On Wednesday, Lucid Motors, the electric vehicle manufacturer, announced the inauguration of its first global factory in Jeddah, Saudi Arabia, as part of an agreement aimed at advancing the transition to electric vehicles in the Kingdom.
Last year, Lucid unveiled plans to establish the factory in Jeddah, with Saudi Arabia signing an agreement to purchase up to 100,000 vehicles from the company over ten years.
Saudi Arabia's sovereign wealth fund, the largest shareholder in Lucid, is leading the Kingdom's plan to reduce reliance on oil revenue, particularly as the electric vehicle industry, dominated by countries like China and the United States, gains prominence.
In 2022, Saudi Arabia launched its first electric vehicle brand, Lucid Air, and announced a $6 billion investment in a complex for steel panels and an electric vehicle battery metals factory.
Additionally, it has been reported that Tesla, a leader in the electric vehicle sector, is in early discussions about establishing a factory in Saudi Arabia.
Lucid Motors' A.M.P-2 factory, located in the King Abdullah Economic City, will produce the luxury electric sedan, Lucid Air, with an initial production capacity of 5,000 cars per year.
The facility will be expanded to manufacture 155,000 cars annually in the future. Lucid Motors also has another manufacturing facility in Arizona, USA.
Saudi Arabia's Public Investment Fund, which owns just over 60% of the electric vehicle company, approved a $1.8 billion investment in Lucid Motors' stock offering in May of this year.
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