Lucid has officially opened its first international factory in Jeddah, Saudi Arabia, a strategic move given the kingdom is home to its largest shareholder, the Saudi Arabia Public Investment Fund (PIF).
Last week Lucid secured an operating permit from the Saudi Economic Cities and Special Zones Authority (ECZA) for its Saudi Arabian factory, and today the luxury EV automaker announced the Advanced Manufacturing Plant, AMP-2, is now open, becoming the first car manufacturing plant in the country.
#LucidMotors is proud to open its new facility in Saudi Arabia. The Advanced Manufacturing Plant, AMP-2, is the first car manufacturing plant in the country. As Lucid’s first international factory, AMP-2 represents a shared commitment to accelerate the adoption of sustainable… pic.twitter.com/7tQC4JvJBK
— Lucid Motors (@LucidMotors) September 27, 2023
Initially, AMP-2 will have the capacity to assemble 5,000 Lucid vehicles annually, but the company says the facility will expand to accommodate a production capacity of 150,000 vehicles per year. In the short term, the factory will not build car but re-assemble Lucid Air vehicle kits, which are pre-manufactured at the company’s factory, AMP-1, in Casa Grande, Arizona. However, Lucid plans to transitioning the Saudi Arabian facility into a complete build unit production center by the middle of this decade.
This factory’s location is not coincidental as Lucid has strong ties with the country given its largest shareholder is the government of Saudi Arabia. The Saudi government, connected to the PIF, has agreed to purchase 100,000 Lucid electric vehicles over the next decade, initially comprising 50,000 Lucid EVs with an option for an additional 50,000.
The Saudi PIF invested a substantial $1 billion into Lucid Motors back in 2018 when the company was still privately held. This investment played a pivotal role in ensuring Lucid’s ability to kickstart production of its first EV, the Air. Even as Lucid went public through a merger with a special purpose acquisition company, the PIF has added to its substantial investment to now hold a majority stake in the company.
