- Lucid's new factory to bring advanced electric vehicle
manufacturing to Saudi Arabia for
the first time with a local capacity of 155,000 units
- New Saudi factory expected to address growing global demand
for Lucid electric vehicles by increasing Lucid's global production
capacity mid-decade to 500,000 EVs per year
- Helps catalyze the transformation of Saudi Arabia's economy through Saudi Vision
2030 and the Saudi Green Initiative
- Signing ceremony celebrates agreements estimated to provide
financing and incentives to Lucid of up to $3.4 billion in aggregate over the next 15
years
- Government of Saudi Arabia
reaffirms commitment to purchase up to 100,000 Lucid electric
vehicles over a ten-year period
RIYADH,
Saudi Arabia, May 18, 2022
/PRNewswire/ -- Lucid Group, Inc. (NASDAQ: LCID), setting new
standards with the longest-range, fastest-charging electric car on
the market with the award-winning Lucid Air, today hosted a
ceremonial signing event to mark the February 2022 agreements with the Ministry of
Investment of Saudi Arabia
("MISA"), the Saudi Industrial Development Fund ("SIDF"), Emaar,
The Economic City, at King Abdullah Economic City ("KAEC") and Gulf
International Bank ("GIB") that sets the stage for the construction
of AMP-2, a world-class Lucid production factory in Saudi Arabia with a capacity of 155,000
electric vehicles.
The agreements celebrated today are estimated to provide
financing and incentives to Lucid up to $3.4
billion in aggregate over the next 15 years to build and
operate a manufacturing facility in Saudi
Arabia.
"This signing ceremony marks yet another step forward in the
realization of Lucid's mission to inspire the adoption of
sustainable energy, and I'm delighted this brand-new manufacturing
facility will come to fruition here in Saudi Arabia," said Peter Rawlinson, Lucid's CEO and CTO. "I am
truly delighted to partner with PIF, our signing partners, and the
Government of Saudi Arabia in
advancing our shared vision of global sustainability."
Rawlinson added: "We are thrilled to be supporting
Saudi Arabia in achieving its
sustainability goals and net-zero ambitions, as outlined in Saudi
Vision 2030 and the Saudi Green Initiative, by taking steps to help
diversify Saudi Arabia's economy
through the establishment of manufacturing capacity in KAEC for up
to 155,000 of Lucid's zero-emissions, electric vehicles per
year."
Rawlinson was joined at the signing event by Sherry House, Lucid's CFO; Jonathan Butler, Lucid's General Counsel;
Faisal Sultan, Lucid's Managing
Director, Middle East; and senior
representatives from the Ministry of Investments, Ministry of
Industry and Mineral Resources, and PIF.
His Excellency Eng. Khalid
Al-Falih, Minister of Investment of Saudi Arabia, said: "With today's signing
ceremony, we are taking a major step towards Saudi Arabia's goal of diversifying its
economy by creating a new manufacturing hub to spearhead the future
of mobility for the Middle East
region. 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. 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."
His Excellency Bandar Alkhorayef, the Minister of Industry
and Mineral Resources and Chairman of Saudi Industrial Development
Fund (SIDF), stated that the automotive industry in the Kingdom
is one of the important sectors supported by the National
Industrial Strategy (NIS) since it is one of the complex industries
that contribute to the development of supply chains for a wide
range of products, noting that all entities of the industry
ecosystem are working together to attract investments, including
EVs, to the Kingdom. He added: "We look forward to working with
Lucid and other leading companies, while continuing to build our
global expertise."
Turqi Al-Nowaiser, PIF's Deputy Governor and Head of
International Investments Division, said: "PIF partners with
leading global innovators, like Lucid, to shape the economies of
the future and drive the economic transformation of Saudi Arabia in line with Saudi Vision
2030."
At the event, Rawlinson participated in a panel focused on the
benefits of Lucid bringing its innovative electric vehicle
technology and advanced new factory to Saudi Arabia.
Lucid reviewed multiple opportunities before selecting KAEC in
Saudi Arabia, an area known for
its livability and sustainability, as the optimal location for the
second of its global network of electric vehicle manufacturing
facilities. Lucid also officially designated the new Saudi Arabian
plant "AMP-2" (Advanced Manufacturing Plant #2), indicating its
position as the next cornerstone of Lucid's vertically integrated
global production network. The factory is situated in KAEC's
'Industrial Valley,' close to King Abdullah
Port along the main Red Sea
trading corridor, an area which has handled more than a third of
Saudi Arabia's Western Region
container volumes. Lucid's Middle
East regional headquarters in Riyadh has been operational since last
year.
Commenting on the agreement, Mr. Cyril Piaia, CEO of Emaar The Economic City,
master developer of KAEC, said: "With this momentous agreement,
we welcome Lucid's first electric vehicle plant outside the US.
KAEC and Saudi Arabia stand to
reap considerable long-term benefits from the project, which is
expected to produce 150,000 electric vehicles per year upon
completion and create over 4,500 jobs in the city. The
sustainable-mobility options the plant is set to provide, along
with a marked uptick in employment opportunities, will bolster
KAEC's reputation as the Kingdom's leading automotive hub and a
vision-ready platform for investors everywhere. It also reflects
our commitment towards the realization of the Kingdom's Vision 2030
goals for economic diversification and the development of promising
new sectors."
Abdulaziz Al-Helaissi, Group
CEO of GIB, commented: "GIB is proud to be a part of this
important step to develop sustainable transportation in the
Kingdom of Saudi Arabia and
support the transition away from fossil fuels. This is a great
opportunity for Lucid and for Saudi
Arabia and captures the spirit of Vision 2030. GIB believes
that green and sustainable finance can be a force for good and we
are committed to a sustainable future."
"Lucid has set out to address global market demand for EVs,
while also taking action to address climate change through
inspiring sustainable transportation, and today's signing ceremony
marks the beginning of this journey," said Faisal Sultan, Lucid's Managing Director,
Middle East. "Alongside PIF,
our partners at MISA, KAEC, and SIDF, and our customer at MOF, we
have gained unique insight into the demand for electric vehicles
and SUVs in Saudi Arabia and
beyond, helping in our efforts to introduce the world's most
advanced electric vehicles to exciting new markets."
At AMP-2, Lucid plans to establish operations initially for
re-assembly of Lucid Air vehicle "kits" that are pre-manufactured
at the company's U.S. AMP-1 facility in Casa Grande, Arizona, and, over time, for
production of complete vehicles. Lucid expects construction of the
plant to commence shortly, and at its peak, Lucid expects to
manufacture up to 155,000 vehicles per year at the facility.
Vehicles will be initially slated for the Saudi Arabian market, but
Lucid plans to export finished vehicles to other global markets. In
addition, Middle East regional
deliveries of the Lucid Air are expected to begin later this year,
supported from the Casa Grande
factory.
In April 2022, the Ministry of
Finance of the Government of Saudi
Arabia ("MOF") entered into an agreement with Lucid to
purchase at least 50,000 and potentially up to 100,000 Lucid
vehicles over a ten-year period. The order quantity for the
committed volume is expected to range from 1,000 to 2,000
vehicles annually and increase to between 4,000 and 7,000 vehicles
annually by 2025. The purchase price of the vehicles will be based
on Lucid's standard retail prices as previously disclosed. This
commitment supports the government's drive to diversify the
economy, provide thousands of local highly skilled job
opportunities, and provide economic benefits to Saudi Arabia in line with Saudi Vision
2030.
About Lucid Group
Lucid's mission is to inspire the
adoption of sustainable energy by creating advanced
technologies and the most captivating luxury electric vehicles
centered around the human experience. The company's first car,
Lucid Air, is a state-of-the-art luxury sedan with a California-inspired design that features
luxurious full-size interior space in a mid-size exterior
footprint. Underpinned by race-proven battery technology and
proprietary powertrains developed entirely in-house, Lucid Air was
named the 2022 MotorTrend Car of the Year®. The Lucid Air Grand
Touring features an official EPA estimated 516 miles of range or
1,050 horsepower. Deliveries of Lucid Air, which is produced
at Lucid's new factory in Casa Grande, Arizona, are currently underway to U.S.
customers.
Media Contact
International:
- Lucid Motors: media@lucidmotors.com
Regional:
- Ibrahim Anabtawi, Brunswick
Group: LucidKSA@brunswickgroup.com
Trademarks
This communication contains
trademarks, service marks, trade names and copyrights of Lucid
Group, Inc. and its subsidiaries and other entities, which are the
property of their respective owners.
Forward Looking Statements
This
communication includes "forward-looking statements" within the
meaning of the "safe harbor" provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
"estimate," "plan," "project," "forecast," "intend," "will,"
"expect," "anticipate," "believe," "seek," "target," "continue,"
"could," "may," "might," "possible," "potential," "predict" or
other similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. These
forward-looking statements include, but are not limited to,
statements regarding Lucid's expectations regarding the Government
of Saudi Arabia's commitment to
purchase vehicles, Lucid's ability to produce and deliver vehicles,
production and delivery volumes, timing of deliveries, pricing,
future manufacturing capabilities and facilities, the promise of
Lucid's technology, and performance, range, and other features of
the Lucid Air. These statements are based on various
assumptions, whether or not identified in this communication, and
on the current expectations of Lucid's management and are not
predictions of actual performance. These forward-looking statements
are provided for illustrative purposes only and are not intended to
serve as, and must not be relied on by any investor as, a
guarantee, an assurance, a prediction or a definitive statement of
fact or probability. Actual events and circumstances are difficult
or impossible to predict and will differ from assumptions. Many
actual events and circumstances are beyond the control of Lucid.
These forward-looking statements are subject to a number of risks
and uncertainties, including factors discussed under the heading
"Risk Factors" in Lucid's Annual Report on Form 10-K for the year
ended December 31, 2021, as well as other documents Lucid
has filed or will file with the Securities and Exchange
Commission. If any of these risks materialize or Lucid's
assumptions prove incorrect, actual results could differ materially
from the results implied by these forward-looking statements. There
may be additional risks that Lucid presently does not know or that
Lucid currently believes are immaterial that could also cause
actual results to differ from those contained in the
forward-looking statements. In addition, forward-looking statements
reflect Lucid's expectations, plans or forecasts of future events
and views as of the date of this communication. Lucid anticipates
that subsequent events and developments will cause Lucid's
assessments to change. However, while Lucid may elect to update
these forward-looking statements at some point in the future, Lucid
specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing Lucid's assessments as of any date subsequent to the
date of this communication. Accordingly, undue reliance should not
be placed upon the forward-looking statements.
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