American electric vehicle manufacturer Lucid Group has set the stage for the construction of its AMP-2, a world-class production factory in Saudi Arabia with the hosting of a ceremonial signing event.
Construction of the plant is likely to commence shortly, and at its peak, Lucid expects to manufacture up to 155,000 vehicles per year at the facility.
The event marks the February 2022 agreements with the Ministry of Investment of Saudi Arabia (MISA), the Saudi Industrial Development Fund (SIDF), Emaar, The Economic City, at King Abdullah Economic City (KAEC) and Gulf International Bank (GIB).
The agreements are estimated to provide financing and incentives to Lucid up to $3.4 billion in aggregate over the next 15 years to build and operate a manufacturing facility in Saudi Arabia. The factory will have a capacity to produce 155,000 electric vehicles.
"This signing ceremony marks yet another step forward in the realisation of Lucid’s mission to inspire the adoption of sustainable energy, and I’m delighted this brand-new manufacturing facility will come to fruition here in Saudi Arabia," said Peter Rawlinson, Lucid’s CEO and CTO.
"I am truly delighted to partner with PIF, our signing partners, and the Government of Saudi Arabia in advancing our shared vision of global sustainability," he added.
Future of mobility
Eng Khalid Al Falih, Minister of Investment of Saudi Arabia, said: "With today’s signing ceremony, we are taking a major step towards Saudi Arabia's goal of diversifying its economy by creating a new manufacturing hub to spearhead the future of mobility for the Middle East region."
"Attracting a global leader in electric vehicles such as Lucid to open its first international manufacturing plant in Saudi Arabia reflects our commitment to creating long-term economic value in a sustainable, enduring, and globally integrated way. This project demonstrates the confidence investors have in Saudi Arabia's competitiveness, its ability to create opportunity, and serve global demand for a highly complex product such as electric vehicles," he added.
The factory is situated in KAEC’s ‘Industrial Valley,’ close to King Abdullah Port along the main Red Sea trading corridor, an area which has handled more than a third of Saudi Arabia’s Western Region container volumes. Lucid’s Middle East regional headquarters in Riyadh has been operational since last year.
"Lucid has set out to address global market demand for EVs, while also taking action to address climate change through inspiring sustainable transportation, and today’s signing ceremony marks the beginning of this journey," remarked Faisal Sultan, Lucid’s Managing Director, Middle East.
"Alongside PIF, our partners at MISA, KAEC, and SIDF, and our customer at MOF, we have gained unique insight into the demand for electric vehicles and SUVs in Saudi Arabia and beyond, helping in our efforts to introduce the world's most advanced electric vehicles to exciting new markets," he noted.
At AMP-2, Lucid plans to establish operations initially for re-assembly of Lucid Air vehicle “kits” that are pre-manufactured at the company’s US AMP-1 facility in Casa Grande, Arizona, and, over time, for production of complete vehicles.
Vehicles will be initially slated for the Saudi Arabian market, but Lucid plans to export finished vehicles to other global markets.-TradeArabia News Service