JEDDAH: US-based Lucid Motors signed agreements on Wednesday to build a production factory in Saudi Arabia with an annual capacity of 155,000 zero-emission electric vehicles.
The deals are estimated to provide financing and incentives to Lucid up to $3.4 billion in total over the next 15 years to build and operate the manufacturing facility in the Kingdom.
To be located in King Abdullah Economic City, AMP-2 is the Public Investment Fund-backed electric vehicle manufacturer’s first production facility outside the US, according to a statement.
This project demonstrates the confidence investors have in Saudi Arabia’s competitiveness.
The Saudi Industrial Development Fund financed the project with SR5 billion ($1.3 billion), said Bandar Alkhorayef, the minister of industry and mineral resources.
The project is expected to create over 4,500 jobs in KAEC, said Cyril Piaia, CEO of Emaar The Economic City, master developer of KAEC.
“We have a technology-based factory, we will bring thousands of high-tech jobs to the Kingdom,” Peter Rawlinson, CEO of Lucid Motors, 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,” Saudi Investment Minister Khalid Al-Falih said.
“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,” Al-Falih added.
About 85 percent of the factory’s production will be exported, reflecting Saudi Arabia’s competitive location and abilities, AlKhorayef said.
The agreements were signed between the Saudi Investment Ministry, the Saudi Industrial Development Fund, Emaar, The Economic City, at King Abdullah Economic City and the Gulf International Bank.