PIF-backed Lucid Motors delivers 300 EV units in April, to launch Air Pure later this year, CEO says

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Updated 23 May 2022

PIF-backed Lucid Motors delivers 300 EV units in April, to launch Air Pure later this year, CEO says

PIF-backed Lucid Motors delivers 300 EV units in April, to launch Air Pure later this year, CEO says
  • By 2025, the company will accelerate its technology to reduce cost, energy consumption

JEDDAH: US-based electric vehicle manufacturer Lucid Motors delivered 360 cars to consumers during the first quarter of 2022. In contrast, the company sold 300 vehicles last month alone.
It is an encouraging sign considering that the EV manufacturer started its production last year and delivered its first car in October 2021.
“We are growing rapidly, and the Arizona factory can extend its production to 350,000 units a year by 2025,” Peter Rawlinson, CEO of Lucid Motors, told Arab News.
The prices of Lucid’s units range from $87,000 to $179,000, and it is planning to launch an edition later this year named Air Pure at the price of $87,000. Air Pure could cover over 400 miles on a single charge.

No one is even close to us. I think we are several years ahead of everyone else.

Peter Rawlinson

“We are defining a luxury brand with a high-end product, and when you look at what’s available in the market, that is a very good value,” he added.
By 2025, the company will accelerate its technology to reduce cost and energy consumption.
“The obstacle of EV is the prices of a vehicle. We can use our technological advantage to make cars that go further with fewer batteries, which means we can make the cars more affordable to buy and run because it consumes less energy,” said Rawlinson.
“When we move to the middle of the decade, our middle-size platform will become available, and that’s when we can drive the price down to closer to $50,000 in today’s prices,” he added.
 

Setting out on Arabian Safari
The company partnered with Saudi Arabia’s Public Investment Fund in 2018, which Rawlinson described as a turning point for Lucid Motors. The company was short on capital, and the PIF backed it up.
“We have got an alignment of mindset here with Saudi Arabia’s Vision 2030, and this could extend beyond just the cars. Certainly, it will extend into stimulating the economy with a supply chain and the infrastructure supporting manufacturing,” he said.
The EV startup went public in July last year. Its shares began trading on the Nasdaq stock exchange, where it raised $4.5 billion in fresh capital.
“In theory, we can break even in a few years. The question is do you want to do that?” said Rawlinson on the sidelines of Lucid’s factory signing ceremony.
To Rawlinson, the best value for shareholders is to continue on a rapid expansion, maximizing the share value return for an investor, rather than meeting short-time demands of breaking even.
Lucid Motors signed agreements on May 18 to build a production factory in King Abdullah Economic City, the western part of the Kingdom, with an annual capacity of 150,000 zero-emission EVs.
With this deal, Lucid is estimated to receive up to $3.4 billion in finance and incentives over the next 15 years to build and run the manufacturing facility in the Kingdom.

HIGHLIGHTS

The prices of Lucid’s units range from $87,000 to $179,000. It is planning to launch an edition later this year named Air Pure at the price of $87,000.

Air Pure could cover over 400 miles on a single charge.

Lucid Motors signed agreements on May 18 to build a production factory in King Abdullah Economic City with an annual capacity of 150,000 zero-emission EVs.

 

Production plans in the Kingdom
“We will ship semi-knocked-down kits of Lucid Airs from Arizona to KAEC, and we assemble those SKD kits here in Saudi Arabia,” Rawlinson said.
The production will start next year, and a complete assembly will be ready by 2025.
“And we will grow this volume up through 2026 to get to 150,000 units a year as soon as possible, and that’s the installed capacity of the factory we are building,” he added
Part of the factory’s function in KAEC will manufacture all-electric powertrains in-house, including battery packs, motors, inverters and transmissions.
“We make the most advanced battery pack globally, and we are well known for that,” he said.


The strategy will involve sending workers from Saudi Arabia to Arizona, where they will be trained to replicate the whole process in the Kingdom.
“This is not just an assembly plot where we build cars together; the core technology is actually built in-house,” he added.
Besides Lucid, only Tesla builds its technology in-house, which Rawlinson believes is the reason behind Tesla’s success. 
“I think they are four to five years ahead of everybody else, but today if you look at our technology, we are probably about three years ahead of what Tesla is,” he said.
Rawlinson measures this on efficiency, as he believes that the right way of measuring an EV technology is in miles per kilowatt-hour efficiency, given the size and sector the car is in.
“No one is even close to us. I think we are several years ahead of everyone else,” he said.


Biden administration holding its first onshore oil sales

Biden administration holding its first onshore oil sales
Updated 29 June 2022

Biden administration holding its first onshore oil sales

Biden administration holding its first onshore oil sales

BILLINGS: The US government this week is holding its first onshore oil and gas drilling lease auctions since President Joe Biden took office after a federal court blocked the administration’s attempt to suspend such sales because of climate change worries.

The online auctions start on Wednesday and will conclude on Thursday. About 200 square miles (518 square kilometers) of federal lands were offered for lease in eight western states. Most of the parcels are in Wyoming.

The sales come as federal officials try to balance efforts to fight climate change against pressure to bring down high gas prices.

Republicans want Biden to expand US crude production. But he faces calls from within his own party to do more to curb fossil fuel emissions that are heating the planet.

A coalition of 10 environmental groups said in a lawsuit filed before the sales even began that they were illegal because officials acknowledged the climate change impacts but proceeded anyway.

An immediate ruling was not expected. Interior Department spokesperson Melissa Schwartz said the agency did not have comment on the litigation.

Beginning with this week’s sales the royalty rate for oil produced from new federal leases is increasing to 18.75 percent from 12.5 percent. That’s a 50 percent jump and marks the first increase since the 1920s.

Parcels also are being offered in Colorado, Utah, New Mexico, Montana, Nevada, North Dakota and Oklahoma.

Hundreds of parcels of public land that companies nominated for leasing had been previously dropped by the administration because of concerns over wildlife being harmed by drilling rigs. More parcels covering about 49 square kilometers were dropped at the last minute in Wyoming because of potential impacts on wilderness, officials said.

But attorney Melissa Hornbein with the Western Environmental Law Center said the reductions in the size of the sales were not enough.

“They are hoping that by choosing to hold sales on a smaller amount of acreage they are threading the needle. But from our perspective, the climate science is the one thing that doesn't lie,” Hornbein said.

Fossil fuels extracted from public lands account for about 20 percent of energy-related US greenhouse gas emissions, making them a prime target for climate activists who want to shut down leasing.

Biden suspended new leasing just a week after taking office in January 2021. A federal judge in Louisiana ordered the sales to resume, saying Interior officials had offered no “rational explanation” for canceling them and only Congress could do so.

The government held an offshore lease auction in the Gulf of Mexico in November, although a court later blocked that sale before the leases were issued.


Arabian Plastic Industrial Co. gets CMA nod to IPO 20% stake on Nomu

Arabian Plastic Industrial Co. gets CMA nod to IPO 20% stake on Nomu
Updated 29 June 2022

Arabian Plastic Industrial Co. gets CMA nod to IPO 20% stake on Nomu

Arabian Plastic Industrial Co. gets CMA nod to IPO 20% stake on Nomu

RIYADH: Saudi-based Arabian Plastic Industrial Co. has received approval for an initial public offering of 1 million shares on the Kingdom’s parallel market.

Shares to be listed represent 20 percent of the company’s share capital. 

The resolution was issued by the Saudi stock market regulator Capital Market Authority in a statement on Wednesday.

The Capital Market Authority’s approval shall be valid for six months from the authority’s board resolution date. It shall be deemed cancelled if the company’s offering is not completed within this period. 

The authority also granted Abdulaziz and Mansour Ibrahim Albabtin Co. approval to list 544,000 shares, representing 16 percent of the firm’s capital, on Nomu.

 

 


Arabian Drilling Co. gets approval to IPO 30% stake on Saudi stock market

Arabian Drilling Co. gets approval to IPO 30% stake on Saudi stock market
Updated 29 June 2022

Arabian Drilling Co. gets approval to IPO 30% stake on Saudi stock market

Arabian Drilling Co. gets approval to IPO 30% stake on Saudi stock market

RIYADH: Saudi-based Arabian Drilling Co. has received approval for an initial public offering of 26.7 million shares, representing 30 percent of the firm’s capital, on the Kingdom’s stock exchange.

The Capital Market Authority’s approval shall be valid for six months from the authority’s board resolution date. It shall be deemed cancelled if the company’s offering is not completed within this period. 


ICT infrastructure in Makkah, Madinah fully operational for Hajj with 41% rise in 5G towers 

ICT infrastructure in Makkah, Madinah fully operational for Hajj with 41% rise in 5G towers 
Updated 29 June 2022

ICT infrastructure in Makkah, Madinah fully operational for Hajj with 41% rise in 5G towers 

ICT infrastructure in Makkah, Madinah fully operational for Hajj with 41% rise in 5G towers 

RIYADH:  The Communications and Information Technology Commission, Saudi Arabia’s digital regulator, on Wednesday announced that communication infrastructure is fully operational in Makkah and Madinah and ready for this year’s Hajj.

The CITC has ensured the functioning of over 5,900 communication towers and more than 11,000 Wifi access points in the two holy cities, according to a statement. 

The number of 5G towers rose 41 percent to reach more than 2,600.

 “The Kingdom’s infrastructure readiness will not only help smooth the passage of fulfilling a lifelong dream,” said CITC Gov. Mohammed bin Saud Al-Tamimi, “it will significantly enhance their (pilgrims) digital experience.” 

 


Saudi Electricity sells entire stake of its subsidiary to the government

Saudi Electricity sells entire stake of its subsidiary to the government
Updated 29 June 2022

Saudi Electricity sells entire stake of its subsidiary to the government

Saudi Electricity sells entire stake of its subsidiary to the government

RIYADH: State-owned Saudi Electricity Co. has transferred its entire stake in the Saudi Power Procurement Co. to the government, the company said in a bourse filing.

SPPC as of today is an independent company wholly owned by the government, following completion of all legal arrangements for sale and transfer of assets, liabilities, and contracts

SPPC and SEC also signed energy conversion agreements, bulk supplies, and fuel supply novations, all effective July 1.

With that, SEC, SPPC and the Ministry of Finance signed a fuel inventory sale agreement, which stipulates that the ministry shall pay SEC its net book value for the fuel inventory.

The sale price shall be calculated based on the book value of SPPC's net assets at the end of the second quarter of 2022.

SEC does not expect the carve-out of SPPC to negatively impact its business since SPPC possesses no material tangible assets.