JEDDAH, Saudi Arabia: As part of Riyadh's efforts to further Saudi Arabia's electrification drive, electric vehicle (EV) maker Lucid announced the opening of its first international manufacturing plant in Jeddah, this week.
After revealing plans for the Jeddah factory in 2022, Lucid, whose largest shareholder is Saudi's sovereign wealth fund, said the kingdom has signed an agreement to purchase some 100,000 vehicles over 10 years.
Lucid's AMP-2 facility, located in King Abdullah Economic City (KAEC), will assemble the luxury electric sedan Lucid Air, with an initial production capacity of 5,000 units per year.
The site will be scaled up to produce a future output of 155,000 units per year.
The fund, responsible for managing Riyadh's plan to reduce reliance on oil, aims to make the kingdom a major player in the EV industry, dominated by countries such as China and the U.S.
In 2022, Saudi Arabia launched its first EV brand, Ceer, and announced $6 billion in investments for a steel plate mill complex and an EV battery metals plant.
Reports also show that EV sector leader Tesla is in early discussions to establish a production plant in the country.