Lucid Group makes history in Saudi Arabia as it opens country’s first-ever car manufacturing facility

27 September 2023 Riyadh, KSA
Lucid Group makes history in Saudi Arabia
  • Lucid Group commences assembly of Lucid Airs in its first international manufacturing plant, located in KAEC
  • In the future, the facility is expected to have capacity to produce 155,000 electric vehicles per annum
  • PIF has invested in Lucid, and part of the Fund’s mandate is to support innovation and unlock key strategic sectors

Lucid Group – which is setting new standards for the luxury electric experience with its Lucid Air and is the winner of the 2023 World Luxury Car Award – has officially opened the first-ever car manufacturing facility in Saudi Arabia. As Lucid’s second Advanced Manufacturing Plant (AMP-2) and first international plant, the facility will produce Lucid’s ground-breaking electric vehicles for Saudi Arabia and export to other markets.

The AMP-2 facility received significant support from the Ministry of Investment of Saudi Arabia (MISA), the Saudi Industrial Development Fund (SIDF), and the Economic City at King Abdullah Economic City (KAEC) and will play a pivotal role in accelerating Saudi Arabia’s strategic goal to diversify its economy. Through the development of electric transportation, Lucid will support the Saudi Green Initiative’s imperative to ensure 30% of new car sales in Saudi Arabia are electric by 2030.

“We are delighted to make history today in Saudi Arabia by opening the country’s first car manufacturing facility, which will produce our award-winning electric vehicles and support the country’s vision for a more sustainable and diversified economy,” said Peter Rawlinson, CEO and CTO, Lucid Group. “As Saudi charges toward its Vision 2030, our facility will pave the way for the country’s electric automotive industry and the expansion of the supply chain, and with the support of the Saudi Government, we are proud to drive local talent development in the technology industry. We look forward to delivering Saudi-assembled cars to customers in Saudi Arabia and beyond.”

The AMP-2 facility has begun semi knocked-down (SKD) assembly and is expected to have an annual capacity of 5,000 cars. The initial operation re-assembles Lucid Air vehicle ‘kits’ that are pre-manufactured at the company’s U.S. AMP-1 Manufacturing Facility in Casa Grande, Arizona. Lucid aims to transition AMP-2 to complete build unit (CBU) production after the middle of the decade, with an additional annual capacity of 150,000 cars.

AMP-2 will be a driving force for innovation and job creation, championing homegrown Saudi talent and providing expert skill development training. Through an agreement with Human Resources Development Fund (HRDF), Lucid expects to employ hundreds of Saudi nationals in the first few years and eventually grow the workforce into the thousands. In line with Vision 2030, Lucid and HRDF’s investment aims to attract, train, and retain talent to build a robust, skilled, and localized workforce.

The plant’s strategic location near Jeddah will also act as a catalyst to further grow and expand the newly established domestic supply chain, creating demand for local suppliers and fostering long-term growth. Jeddah’s position on the Red Sea coast already offers robust supply chain access by land and sea and enables Lucid to export its finished luxury electric vehicles to other regions in the future.

“Today is a proud moment for all of us at Lucid as we play a part in Saudi Arabia’s history and create long-term economic value for the country. Earlier this year, we were thrilled to introduce the first and most advanced electric vehicle, the Lucid Air, to the Saudi Arabia market,” said Faisal Sultan, Vice President and Managing Director Middle East, Lucid Group. “The opening of our facility today marks the beginning of our production operations to assemble our world class Lucid Air. AMP-2 in KAEC, in addition to our existing AMP-1 facility in Arizona, gives us the ability to efficiently fulfill the recently signed agreement with the government of Saudi Arabia to purchase up to 100,000 vehicles over a ten-year period, with an initial commitment to purchase 50,000 vehicles and an option to purchase up to an additional 50,000 vehicles over the same period.”

Lucid’s AMP-2 facility officially opened at a high-profile VIP event in the presence of H.E. Yasir O. Al-Rumayyan, Governor of the Public Investment Fund of Saudi Arabia; Lucid Group Chairman of the Board, Turqi Alnowaiser; Lucid Group CEO and CTO, Peter Rawlinson; and Lucid Group Vice President and Managing Director Middle East, Faisal Sultan; alongside ministers and dignitaries from many esteemed organizations. Lucid Airs were also delivered to a select group of customers at the event.

PIF has invested in Lucid, and part of the Fund’s mandate is to support innovation and unlock key strategic sectors.​