Lucid Motors has manufactured 800 electric vehicles in Saudi Arabia at its first international plant, which opened in September 2023.
The vehicles were initially built in Arizona before final assembly in Saudi Arabia. Lucid Motors is 60% owned by the Saudi Public Investment Fund (The PIF) and has an agreement with the Saudi Arabian government to sell 100,000 electric vehicles over the next 10 years.
Broadening EV Manufacturing
Lucid’s Saudi Arabian factory workers are tasked with re-attaching the battery, re-applying the trim and tires, and re-testing the vehicle. This meticulous process ensures the seamless operation of EVs, in line with the company’s commitment to delivering high-quality products.
“The car is fully built-in Arizona … then it gets de-assembled… then the car gets shipped here as a kit, and that kit is then put back together,” explained Faisal Sultan, Lucid’s Global Vice-President.
Despite being a small operation, the Saudi Arabian plant plays an instrumental role in Lucid’s long-term vision. The company aims to gradually increase the production rate while maintaining its focus on workforce training.
“It [the Saudi factory] is a small operation for us. We have kept it this way because we want to take baby steps in our approach to training people,” said Faisal Sultan
Building a Sustainable Future
Lucid’s investment in Saudi Arabia represents the company’s belief in the region’s potential to become an EV hub. The Saudi government’s pledge to purchase up to 100,000 vehicles from Lucid over the next decade further solidifies this partnership.
The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund and the majority stakeholder in Lucid, has invested billions in the company. This investment is part of the government’s strategy to establish Saudi Arabia as a global EV hub.
“It has to make business sense at the end of the day for us to open that factory, but construction continues,” Faisal Sultan added.
Preparing for a CBUs
Lucid is laying the groundwork for establishing a Complete Build Unit (CBU) in 2026. The factory, which is currently under construction, will be equipped to manufacture a car from scratch.
Lucid Motors has obtained a license to begin electric vehicle production in a special economic zone in Saudi Arabia. Lucid plans to produce 150,000 EVs annually in the King Abdullah Economic City.
This move will allow Lucid to increase its production capacity, meeting the growing demand for EVs. The company plans to produce 155,000 vehicles annually at the Saudi Arabian factory.
“We cannot have operations up and running and not be efficient by bringing parts from all over the world,” Faisal Sultan remarked
The first EV manufacturing plant in Saudi Arabia has officially opened. The award-winning #LucidAir is now being assembled at AMP-2, Lucid Motor's Advanced Manufacturing Plant. pic.twitter.com/kD0r0DrWtx— Lucid Motors (@LucidMotors) September 28, 2023
Despite facing challenges in the initial phase, Lucid has managed to ship approximately 700 EVs to Saudi Arabia for final assembly. The company’s CFO, Sherry House, acknowledged that the scale-up process took longer than expected.
Lucid reported third-quarter revenue of $137.81 million, with a quarterly loss of 28 cents per share, while producing 1,550 vehicles.
“To align deliveries with production, the company is adjusting its target to produce 8,000-8,500 vehicles this year, down from the initial projection of over 10,000 units,” according to the company’s CFO, Sherry House.
The future of the EV industry in Saudi Arabia looks promising. Lucid’s regional investment and the Saudi government’s commitment to the EV industry indicate a bright future.
Lucid’s progressive strides in Saudi Arabia illustrate the company’s commitment to cultivating a skilled workforce and producing high-quality EVs.
“Lucid’s investment in Saudi Arabia represents the company’s belief in the region’s potential to become an EV hub,” Sultan concluded
More Lucid Air Partnerships
Riyadh Air, Saudi Arabia’s newest airline fully owned by the Public Investment Fund, has partnered with Lucid Motors. The partnership emphasizes its commitment to innovation and sustainability in aviation and electric vehicle production.
The MoU was officially announced at the Dubai Airshow amidst much fanfare. As part of the announcement, Riyadh Air revealed an impressive dual-livery design on two Lucid Air vehicles. This symbolized the strong bond the two entities intend to forge through their partnership.
Lucid Group’s efforts to train a skilled workforce and assemble EVs in Saudi Arabia reflect its strategic vision. The company’s investment in the region and its focus on employee training signifies its commitment to establishing Saudi Arabia as a global EV hub.
With its progressive strides, Lucid is poised to spearhead the EV revolution in the Middle East.