June 29, 2022

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Lucid is manufactured in Saudi Arabia – 150,000 cars annually and businesses worth $3.4 billion

Today, Tuesday, Lucid Group Inc., listed on the Nasdaq Stock Exchange, announced the signing of agreements with the Saudi Ministry of Investment, the Saudi Industrial Development Fund and King Abdullah Economic City, as part of preparations for the establishment of an integrated production plant for its cars in the Kingdom.

These agreements are expected to contribute to accelerating the achievement of the Kingdom’s strategic goal, which aims to diversify economic resources by transforming the transportation sector to adopting sustainable energy.

production

Lucid also expects that its choice to build its first international facility in Saudi Arabia will result in a turnover of approximately $3.4 billion over the next fifteen years, which will enable Lucid to meet the increasing demand for its products.

“Lucid is always looking to make positive changes wherever it is found, so it makes perfect sense to bring electric vehicle manufacturing to one of the world’s largest oil producing countries,” said Peter Rawlinson, Lucid Group CEO and CTO. In the international industry sector, it is a practical and natural step that will enable us to consolidate our brand and expand the scope of our business portfolio, by keeping pace with the demand in the global market, and seizing untapped opportunities, according to completely new and high standards, while constantly striving to reduce the effects of climate change, by stimulating Our close relations with the Public Investment Fund, and with our partners in the Saudi Ministry of Investment, King Abdullah Economic City, and the Saudi Industrial Development Fund, give us, as a whole, a unique view of the demand for luxury cars and SUVs inside and outside the Kingdom We are very excited to bring the latest electric vehicles in the world to more international markets.”

Lucid explored many available opportunities before choosing King Abdullah Economic City in the Kingdom as the best location for setting up its first international manufacturing facility. The new facility will be wholly owned by Lucid Group and will enable the group to meet the growing international demand for luxury electric vehicles.

Lucid also expects to benefit from the availability of low-cost commodities and energy products, as well as adopting a phased approach to building a local supply chain, while taking advantage of a strategic location that benefits from global logistics.

The company also expects to obtain loans to build and equip the manufacturing facility, and to provide specialized training for workers in the automotive sector.

Lucid plans to establish its facility, in King Abdullah Economic City, to assemble parts for the Lucid Air, which was previously manufactured at the group’s AMP-1 manufacturing facility in Casa Grande, Arizona. The new facility.

The group expects the facility to reach a peak production of 150,000 vehicles annually, and is scheduled to start operations in the first half of 2022.

manufacturing stages

In the first phase, the facility’s products will be limited to meeting the demand in the Saudi market, but “Lucid” plans to export fully-ready vehicles to other global markets, including exclusive models designed to meet the requirements of “Lucid” customers in the region and abroad.

The AMP-1 facility in Arizona will remain the company’s primary manufacturing hub, relying on the Lucid Production System and other manufacturing technologies developed in the United States, before the system and those technologies are transferred to the group’s other manufacturing facilities.

Lucid has already commenced the second phase of construction of the AMP-1, which includes expanding the facility by approximately 265,000 square meters, as well as plans to increase its annual production capacity to 365,000 vehicles in Arizona.

Lucid estimates that the total production capacity of its two facilities in Arizona and Saudi Arabia will exceed 500,000 vehicles per year when each facility reaches its target capacity.

In addition, Lucid expects that the Kingdom’s efforts to support the automotive industry, within the framework of the Kingdom’s Vision 2030, in addition to Lucid’s endeavors to build the supply, distribution and retail chain in the Kingdom, will enable it to achieve lower costs, in addition to the environmental benefits resulting from shortening the stages of production. Transferring the product to the customer.

The new facility will also support the Kingdom’s efforts to achieve economic diversification and shift from fossil fuel consumption to sustainable energy, especially in the transportation sector.

Jobs

Lucid expects to create thousands of jobs at the King Abdullah Economic City facility when it reaches its full production capacity, and most of its employees are expected to be Saudi nationals.

The group, in cooperation with the Saudi Public Investment Fund, has prepared an in-house training program that provides education and training opportunities for Saudi citizens at Lucid facilities in California and Arizona, to develop the competencies necessary to operate the group’s facility in the Kingdom. In addition, Lucid will build and operate specialized training centers in King Abdullah Economic City that will work on refining and developing the skills of the workforce.

It is known that the Public Investment Fund had worked to develop partnerships with many leading and innovative entities globally such as Lucid Company, which reflects the Fund’s commitment to building a future national economy and supporting the economic transformation in the Kingdom of Saudi Arabia in line with the Kingdom’s Vision 2030.

Khalid bin Abdulaziz Al-Falih said; The Saudi Minister of Investment: “Today we are making an important stride in our journey towards translating the goals of the Kingdom of Saudi Arabia, which aims to diversify the sources of the economy, by establishing innovative manufacturing centers, with the size and value of the Lucid production facility, which is located in a strategic area in the west of the Kingdom of Saudi Arabia.” , on the Red Sea coast, where this project comes from our ambition to lead the future of smart mobility in the Middle East.There is no doubt that encouraging innovative companies in the electric car industry, such as “Lucid”, to establish their first manufacturing facility in the Kingdom, reflects our commitment By achieving an economic return, for the Kingdom and our partners, in the long term, while adhering to the best international practices in the field of sustainability, development and transparency, a step that confirms investors’ confidence in the Kingdom’s ability to provide broad prospects of opportunities and meet the global demand for new electric cars.”

value chains

The Minister of Industry and Mineral Resources, Chairman of the Board of Directors of the Saudi Industrial Development Fund, said; Bandar bin Ibrahim Al-Khorayef: “The establishment of a new manufacturing center for Lucid Company in Saudi Arabia is in line with our strategy aimed at diversifying the economic base, especially the development and diversification of the industrial sector as part of the Kingdom’s Vision 2030 and the Industrial Development and Logistics Program. We are proud of this partnership to enable this The new industry in the Kingdom, which is characterized by being one of the most complex and technology-dependent industries of the future, and contributes to the development of value-added chains to it and to other industries that intersect with the automotive industry such as the manufacture of batteries and its services and the development of associated value chains.

Al-Khorayef added, “We look forward to working with Lucid and other leading companies, and at the same time we continue to build our global expertise based on the many qualitative advantages that the Kingdom of Saudi Arabia enjoys, starting with the presence of national human cadres, and the ideal infrastructure for many industries, to To the distinguished geographical position of Saudi Arabia among the countries of the region.

Cyril Baya, CEO of Emaar the Economic City, master developer of KAEC, said: “Lucid Group’s decision to establish its first international factory in KAEC represents a significant point in our journey to become a pioneering city with a world-class manufacturing and logistics hub. We are proud that King Abdullah Economic City will serve as a global platform for launching modern sustainable mobility innovations, such as electric cars, thus enhancing its position and ability to achieve the goals of the Kingdom’s Vision 2030.”

Also, Martina Strong said; The Chargé d’Affairs at the US Embassy in Riyadh: “The US government welcomes the Kingdom’s efforts to diversify its economy sources, and highly appreciates its role in limiting the impacts of climate change. There is no doubt that this new step reflects the Kingdom’s ability to achieve both goals together, through partnership and cooperation with leading American companies in the field of innovation.