Lucid to open EV plant in Saudi

U.S.-based EV manufacturer Lucid Group has announced plans to open a plant at King Abdullah Economic City (KAEC) in Saudi Arabia, where it aims to produce 150,000 vehicles per year. 

Lucid reviewed multiple locations before selecting KAEC, where it will benefit from easy access to cheap commodities and energy, a newly-emerging domestic supply chain, and a strategic location in terms of global logistics. 

Construction on the plan is expected to begin in the first half of this year. The first vehicles to be assembled are destined for the local Saudi market, but the final aim is for global distribution. 

The deal, concluded with Saudi authorities, accelerates the Kingdom’s strategic goal to transform its economy from a mainly petroleum-based model to a more diversified and sustainable one. 

The KAEC plant, which will be fully owned by Lucid, will address growing international demand for luxury EVs. Initially, the aim is to assemble kits for the Lucid Air vehicle (pictured) pre-manufactured in Arizona. Over time, the plant will roll out complete vehicles. 

Lucid has not communicated when it forecasts its Saudi plant to go live. When at optimal speed, the company expects the joint capacity of its Saudi and U.S. plants to reach 500,000 vehicles per year.

Image: Lucid