PIF-backed Lucid Motors to set up first overseas production factory in Saudi Arabia

WCN Editorial Team 19 May 2022 MIDDLE EAST

US-based Lucid Motors has inked agreements for the construction of electric vehicle production facility in Saudi Arabia.

The AMP-2 facility, to be located in King Abdullah Economic City (KAEC), will have a capacity to produce 155,000 zero-emission electric vehicles annually.

The agreements are estimated to offer financing and incentives of up to a total $3.4bn to Public Investment Fund-backed Lucid over the next 15 years to construct and operate the facility in Saudi Arabia.

AMP-2 is the company’s first manufacturing facility outside the US. AMP-1 is located in Arizona, US.

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef said that the Saudi Industrial Development Fund financed the project with $1.3bn (SAR5bn).

Emaar The Economic City CEO and KAEC master developer Cyril Piaia said that this project is expected to create more than 4,500 jobs in the country.

Lucid Motors CEO Peter Rawlinson said: “We have a technology-based factory, we will bring thousands of high-tech jobs to the Kingdom.”

Saudi Investment Minister Khalid Al-Falih said: “Attracting a global leader in electric vehicles such as Lucid to open its first international manufacturing plant in Saudi Arabia reflects our commitment to creating long-term economic value in a sustainable, enduring, and globally integrated way.”

Al-Falih added: “This project demonstrates the confidence investors have in Saudi Arabia’s competitiveness, its ability to create opportunity, and serve global demand for a highly complex product such as electric vehicles.”

Around 85% of the facility’s production will be exported.

The deals were signed between Saudi Investment Ministry, Saudi Industrial Development Fund, Emaar, The Economic City, at King Abdullah Economic City and the Gulf International Bank.
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Image: AMP-2 will be located in King Abdullah Economic City (KAEC) and have a capacity to produce 155,000 zero-emission electric vehicles annually. Credit: Lucid Motors/PR Newswire.

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