May 23, 2024

Lucid Group Inaugurates Saudi Arabia’s Pioneering Automobile Production Facility

_Electric Vehicles.

_Electric Vehicles.

Last Updated on March 19, 2024 by newseditor

Lucid Group, a manufacturer of high-end electric vehicles, has launched its first global manufacturing facility in Saudi Arabia, where it plans to build 155,000 electric vehicles annually.

According to a statement released by Lucid Group, the California-based firm, which KSA’s Public Investment Fund supports, has begun assembling its first luxury car, the Lucid Air, at a factory close to Jeddah. 

Lucid’s Expansion in Saudi Arabia: The Road to Sustainable Growth

According to Lucid, the King Abdullah Economic City (KAEC) facility is the company’s second advanced manufacturing plant (AMP-2), with the first one being in Arizona. In addition, the AMP-2 can build “5,000 Lucid vehicles annually” on a semi-knocked-down basis. Currently, it reassembles pre-manufactured Lucid Air vehicle kits at AMP-1.

Lucid’s chief executive and technology officer, Peter Rawlinson, expressed that their facility will play a crucial role in supporting KSA’s Vision 2030. It will serve as a starting point for the country’s electric automotive industry and the growth of the supply chain. The decision aims to help in realizing the nation’s goal for a sustainable and diversified economy

According to Goldman Sachs, the global sales of new cars are expected to see electric vehicles accounting for approximately 50% by the year 2035. This surge in electric vehicle adoption is a result of the increasing urgency to achieve net-zero carbon emissions.

According to an International Energy Agency estimate, sales of electric cars exceeded 10 million last year, indicating that the sector is expanding rapidly. In 2022, 14% of all new automobiles sold were electric, up from less than 5% in 2021 and roughly 9% in 2022, according to the report.

According to Lucid, the KAEC plant will also help KSA achieve its strategic goal of modernizing and diversifying its economy by developing sustainable energy and transportation. 

VP and managing director of Middle East at Lucid Group, Faisal Sultan, stated that AMP-2 in KAEC enabled them to quickly meet the newly signed agreement with the Saudi government. The arrangement called for the purchase of up to 100,000 vehicles over 10 years, with an initial commitment to buy 50,000 vehicles and the opportunity to buy an additional 50,000 vehicles during the same time frame.

According to Lucid, KSA’s Ministry of Investment, the Saudi Industrial Development Fund, and KAEC signed agreements for the factory in March of last year. By the second half of this decade, when it wants to start producing full automobiles at the Saudi plant, the company hopes to increase production to 150,000 units yearly. 

Through a partnership with the Saudi Human Resources Development Fund, Lucid further anticipates hiring “hundreds of Saudi nationals in the first few years and eventually growing the workforce into the thousands.”


The opening of Lucid Group’s pioneering automobile manufacturing facility in KSA is an important move toward long-term growth in the electric vehicle industry. Lucid’s development aims to contribute to the nation’s diverse and sustainable economy, with plans to create 155,000 electric vehicles yearly and support KSA’s Vision 2030. 

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