Lucid Motors Secures $3.4 Billion Funding for New Factory in Saudi Arabia

Lucid Secures $3.4 Billion Funding for New Factory in Saudi Arabia

American electric vehicle manufacturer Lucid Motors has secured $3.4 billion in funding and incentives from the Ministry of Investment in Saudi Arabia (MISA), the Saudi Industrial Development Fund (SIDF), Economic City of King Abdullah (KAEC), and Gulf International Bank (GIB). This funding is set to be disbursed over the next 15 years as part of an agreement.

The Future of the Saudi Factory

This funding will be allocated to the company's AMP-2 factory located in King Abdullah Economic City, which Lucid is heavily investing in. The company aims to produce 150,000 vehicles annually upon completion of the factory in 2025. This means that the Saudi factory will increase Lucid's global production capacity to 500,000 electric vehicles annually by the middle of the decade, generating 4,500 job opportunities in the process.

Signing of the Agreement

The signing ceremony took place in King Abdullah Economic City, where the Saudi government committed to purchasing 100,000 electric vehicles from Lucid over the next ten years as part of its Saudi Vision 2030 and the Saudi Green Initiative. For those unaware, the Saudi government holds the largest stake in Lucid through the Public Investment Fund (PIF).

Vehicle Production at the Saudi Factory

While the Saudi factory will not produce Lucid models from scratch, it will assemble parts for the competitive Lucid Air, which is a direct competitor to the Tesla Model S. The Lucid Air will be produced at the company's AMP-1 factory in the United States, with full vehicle production at the Saudi factory commencing later.

Statements from Officials

Peter Rawlinson, CEO and CTO of Lucid, stated: "This signing ceremony represents another step forward in achieving Lucid's mission to inspire the adoption of sustainable energy, and I am thrilled that this new manufacturing facility is beginning to take shape here in Saudi Arabia. I am truly excited to partner with the Public Investment Fund and our partners in signing with the Saudi government to promote our shared vision for global sustainability."

Minister of Investment Khalid Al-Falih commented: "With today's signing ceremony, we are taking a significant step towards Saudi Arabia's goal of diversifying its economy by establishing a new manufacturing hub to lead the future of mobility in the Middle East."

He concluded by saying: "This project demonstrates investors' confidence in Saudi Arabia's competitiveness and its ability to create opportunities to meet global demand for a highly complex product like electric vehicles."