In a significant milestone, luxury electric vehicle (EV) manufacturer Lucid Group has inaugurated its first international factory in Saudi Arabia, a strategic move that aligns with the interests of its largest shareholder. Nestled in the vibrant city of Jeddah, this state-of-the-art facility will initially have the capacity to assemble 5,000 Lucid vehicles annually, with bold ambitions to scale production to a staggering 150,000 vehicles in the near future.
What sets this endeavor apart is the plant's initial focus on re-assembling Lucid Air vehicle kits, which are pre-manufactured at the company's U.S. factory in Casa Grande, Arizona. However, Lucid's vision extends beyond mere assembly as it charts a course to transform the Saudi Arabian factory into a hub for complete build unit production by the mid-decade mark. It's a testament to Lucid's commitment to innovation and sustainability in the global EV market.
This groundbreaking factory opening follows a pivotal announcement made a year ago by the government of Saudi Arabia. In a visionary move, closely tied to the kingdom's Public Investment Fund, which holds a substantial 60% stake in Lucid, Saudi Arabia pledged to purchase a staggering 100,000 electric vehicles from the automaker over the next decade.
The commitment initially comprised an order for 50,000 of Lucid's EVs, with an option to acquire an additional 50,000 vehicles within the same ten-year timeframe. This purchase agreement encompasses the highly acclaimed Lucid Air, a luxury sedan that graced the market in 2021, and extends to upcoming models like the eagerly anticipated Gravity SUV.
However, this ambitious EV sales initiative is not merely a business transaction. It plays a vital role in Saudi Arabia's Vision 2030 plan, a forward-looking strategy aimed at diversifying the nation's economy away from reliance on fossil fuels. The government's alignment with Lucid's electric vision signifies a commitment to sustainable transportation and echoes a global shift toward cleaner and greener mobility solutions.
In summary, Lucid Group's new international factory in Saudi Arabia marks a significant stride towards achieving its global aspirations in the EV market. With a powerful partnership with the Saudi government and a factory poised for remarkable growth, Lucid is on a trajectory to redefine the future of luxury electric vehicles and contribute to the broader transition towards cleaner energy sources.