Electric car company, Lucid Group, Inc (NASDAQ: LCID) opened a manufacturing facility in Saudi Arabia to produce the company’s electric cars for both the Saudi Arabian and foreign markets.
The AMP-2 facility has started assembling cars, with a capacity of 5,000 per year, according to an announcement on Wednesday.
Initially, it’s putting together Lucid Air vehicle ‘kits’ made in the U.S. at the AMP-1 Manufacturing Facility in Arizona. Lucid plans to fully produce cars at AMP-2 by the mid-2020s, increasing annual capacity to 150,000 cars.
AMP-2 will drive innovation and job growth, emphasizing hiring and training Saudi talent. Through a partnership with the Human Resources Development Fund (HRDF), Lucid aims to hire hundreds of Saudis initially, eventually growing to thousands. This aligns with Vision 2030, focusing on building a strong and skilled local workforce.
The plant’s location near Jeddah will boost the local supply chain, helping local suppliers and supporting long-term growth. Jeddah’s spot on the Red Sea coast provides supply chain access by land and sea, allowing Lucid to export its luxury electric cars to other regions later on.
“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,” said Peter Rawlinson, CEO and CTO, Lucid Group.
Lucid will help the Saudi Green Initiative meet electric vehicle sales targets
The advanced 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). This support is vital for Saudi Arabia’s goal of diversifying its economy.
Lucid will help achieve the Saudi Green Initiative’s target of making 30 per cent of new car sales in the kingdom electric by 2030. This partnership highlights Lucid’s role in promoting a greener and more diversified future for Saudi Arabia.
“The opening of our facility today marks the beginning of our production operations to assemble our world class Lucid Air,” said Faisal Sultan, Vice President and Managing Director Middle East, Lucid Group.
“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.”
The projected revenue for the EV market is expected to reach US$561.3 billion by the end of 2023, according to market analysis firm, Statista. This upward trend is set to continue with an anticipated annual growth rate of 10.07 per cent between 2023-202 to reach US$906.7 billion by 2028.
Lucid Group shares rose 2.8 per cent to $5.46 on Wednesday on the NASDAQ exchange.