In late September, Lucid Motors initiated operations at its second manufacturing facility, originally announced in early 2022. Situated in the vicinity of Jeddah, Saudi Arabia, the plant is designed to assemble Lucid electric vehicles for both the domestic market and for international export.
Initially, the facility will focus on producing semi knocked-down (partially assembled) versions of Lucid’s Air sedan at a production volume of 5,000 units annually. However, future expansion plans are set for later this decade, with the intent to scale up the facility’s capabilities to full-scale production of Lucid automobiles at an annual rate of 150,000 units.
Lucid’s inaugural plant, located in Casa Grande, Arizona, also specializes in manufacturing the Air sedan and is projected to reach an annual production capacity of 365,000 units once fully developed.
The primary shareholder of Lucid is the Public Investment Fund (PIF) of Saudi Arabia. As part of their investment agreement with Lucid, the PIF committed to acquire 100,000 Lucid vehicles over a span of 10 years.
In line with the country’s strategy to diversify its industrial base away from oil, Saudi Arabia last year unveiled its own electric vehicle brand, named Ceer, with plans to introduce its first model by 2025.
Although Lucid is not the first automotive company to explore manufacturing possibilities in Saudi Arabia—Jaguar Land Rover conducted a feasibility study in 2012 for potential production but chose not to move forward—the plant does mark the first of its kind in the country.
Peter Rawlinson, the CEO of Lucid Motors, expressed his enthusiasm in a formal statement, saying, “Today marks a historic milestone for Saudi Arabia as we inaugurate the nation’s inaugural automobile production facility. This will not only produce our critically acclaimed electric vehicles but also support Saudi Arabia’s broader vision for a more diverse and sustainable economy.”
This development is unveiled at a time when Lucid has recently announced a reduction in the pricing of its Air model to stimulate sales. According to a recent financial disclosure, Lucid delivered a total of 1,404 units in the second quarter of the year and forecasts its 2023 production to culminate at approximately 10,000 units. The firm anticipates an upturn in its production and sales with the introduction of its second model, the Gravity SUV, slated for a November debut and expected to enter production in the latter part of 2024.
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Frequently Asked Questions (FAQs) about Lucid Motors Saudi Arabia Plant
What is the significance of Lucid’s new manufacturing plant in Saudi Arabia?
The new manufacturing facility near Jeddah marks Saudi Arabia’s first car plant and represents a significant step in the nation’s efforts to diversify its economy away from oil. Lucid plans to produce 5,000 units of the Air sedan annually at this location initially, with plans to expand production to 150,000 units in the future.
The main shareholder of Lucid Motors is Saudi Arabia’s sovereign wealth fund, known as the Public Investment Fund (PIF). As part of their investment agreement, the PIF has committed to purchasing 100,000 Lucid vehicles over a span of 10 years.
What models will be produced at the new Saudi plant?
Initially, the plant will focus on producing semi knocked-down (partially assembled) versions of Lucid’s Air sedan. Future expansions are planned to increase the site’s capacity and potentially produce other Lucid models.
What are the production capacity plans for Lucid’s Saudi plant?
The initial production capacity is planned at 5,000 units of the Air sedan per year. However, the company has plans to expand the site later this decade to handle complete production at a rate of 150,000 units annually.
How does this new plant compare to Lucid’s first plant in Casa Grande, Arizona?
Lucid’s first plant in Casa Grande, Arizona, also specializes in producing the Air sedan and is expected to reach an annual production capacity of 365,000 units once fully expanded. In contrast, the new Saudi plant has a more modest initial annual capacity of 5,000 units but has plans for significant future expansion.
Has any other automaker tried to establish a plant in Saudi Arabia before?
Yes, Jaguar Land Rover conducted a feasibility study in 2012 for potential car production in Saudi Arabia but did not proceed further with the plans.
What is the current production and sales status of Lucid Motors?
According to a recent financial disclosure, Lucid delivered 1,404 units in the second quarter of the year and forecasts that its 2023 production will reach approximately 10,000 units. The company has also recently reduced the pricing of its Air model to stimulate sales.
What future models does Lucid plan to introduce?
Lucid anticipates an upturn in its production and sales with the introduction of its second model, the Gravity SUV, slated for a November debut and expected to enter production in the latter part of 2024.
More about Lucid Motors Saudi Arabia Plant
- Lucid Motors Official Website
- Saudi Arabia’s Public Investment Fund
- Lucid’s Casa Grande, Arizona Plant Details
- Saudi Arabia’s Economic Diversification Plans
- Lucid Motors Financial Disclosure
- Jaguar Land Rover’s Feasibility Study in Saudi Arabia
- Introduction of Ceer, Saudi Arabia’s EV Brand
- Lucid’s Future Models and Plans
8 comments
Wow, Lucid is really makin moves. First Arizona, now Saudi? That’s big news, esp with PIF backing em up.
So Saudi Arabia is finally getting into car manufacturing, huh? Pretty cool. Diversifying from oil is definitely the way to go.
100,000 vehicles over 10 years from PIF? Thats a pretty solid deal for Lucid, should help them scale up faster.
Lucid setting up in Saudi marks a turning point not just for the co. but maybe for the country’s economy too. One to keep an eye on for sure.
Interesting, 5k units to start but a plan for 150k later? Sounds ambitious but if anyone can do it, it’s probably Lucid.
Lucid and Saudi, a match made in, well, a boardroom I guess. But seriously, this could shake up the EV market big time.
Happy to hear about more electric vehicle production! But I wonder how sustainable the manufacturing processes are?
Lucid Air is already a game changer, can’t wait to see what Gravity SUV brings to the table.