Lucid Group to build its first plant outside U.S. in Saudi Arabia

Lucid Group to build its first plant outside U.S. in Saudi Arabia

American electric vehicle manufacturer Lucid Group Inc has reportedly planned to build its first plant outside the United States in Saudi Arabia.

The manufacturing plant will have the capacity to manufacture 155,000 vehicles a year and will initially cater to the local market. Later, the vehicles will be exported to international markets.

It is worth noting that Lucid’s facility in Arizona can manufacture 350,000 units a year.

According to Chief Executive Officer Peter Rawlinson, the new facility will enable the company to expedite plans to manufacture close to half a million cars a year to 2025 instead of the previously scheduled target of 2030.

Rawlinson added that the current energy crisis has triggered that shift towards battery electric vehicles and there is also a significant rise in demand for EVs.

Khalid al-Falih, the Minister of Investment of Saudi Arabia stated that the Lucid facility is the beginning of the expansion.

He believes that it triggers the entire EV industry in the region and the kingdom intends to collaborate with more companies like Lucid.

Furthermore, Saudi Arabia wants suppliers and EV battery companies to set up facilities in the kingdom which cloud create close to 30,000 jobs.

Rawlinson cited that Lucid aims to expand beyond manufacturing electric cars in the kingdom, pointing at energy storage systems that could be connected to solar photovoltaic farms.

As per the U.S. Energy Information Administration, Saudi Arabia was the second-largest oil producer in the world as of last year. The kingdom has oil reserves close to 297.5 billion barrels.

Aramco, the state oil company of the kingdom, witnessed its spike in net income by 82% to USD 39.5 billion in Q1 of this year.

The kingdom is actively pursuing greener initiatives and commits to its transition towards cleaner energy.

Source credit:

https://www.cnbc.com/2022/05/19/lucid-group-to-build-first-factory-outside-the-us-in-saudi-arabia.html