NEWARK, Calif. and RIYADH, Saudi Arabia, Feb. 28, 2022 /PRNewswire/ -- Lucid Group,
Inc. (NASDAQ: LCID), setting new standards with the longest range,
fastest charging electric car on the market, today announced the
signing of agreements with the Ministry of Investment of
Saudi Arabia ("MISA"), the Saudi
Industrial Development Fund ("SIDF"), and the Economic City at King
Abdullah Economic City ("KAEC"), as it lays the groundwork for a
full production factory in Saudi
Arabia. The agreements are expected to accelerate
Saudi Arabia's strategic goal to
transform and diversify its economy through the development of
sustainable energy and transportation. Lucid estimates that the
location of Lucid's first international manufacturing plant in the
Kingdom of Saudi Arabia may result
in up to $3.4 billion of value to
Lucid over 15 years, and the facility will enable Lucid to address
growing demand for Lucid's products.
![Lucid has announced a long-term plan to bring advanced automotive manufacturing to Saudi Arabia to address global demand. The new international manufacturing plant will target 150,000 vehicles per year at the King Abdullah Economic City, leveraging U.S. engineering, R&D, and manufacturing expertise in assembling new models for global markets. Lucid has announced a long-term plan to bring advanced automotive manufacturing to Saudi Arabia to address global demand. The new international manufacturing plant will target 150,000 vehicles per year at the King Abdullah Economic City, leveraging U.S. engineering, R&D, and manufacturing expertise in assembling new models for global markets.](https://mma.prnewswire.com/media/1756201/EC_Aerial_view.jpg)
"Lucid aspires to be a catalyst for change wherever we go, so it
makes perfect sense that we are bringing electric vehicles to one
of the world's biggest oil producing nations. Establishing a global
manufacturing footprint is a practical, natural step and enables us
to grow our brand, scale our business, and address worldwide and
untapped market demand on an entirely new level, while also taking
action to address climate change through inspiring sustainable
transportation," said Peter
Rawlinson, CEO and CTO, Lucid Group. "Our strong
relationships with the Public Investment Fund and our partners at
MISA, KAEC, and SIDF also give us unique insight into the demand
for luxury cars and SUVs in Saudi
Arabia and beyond, and we are thrilled to introduce the
world's most advanced electric vehicles to more global
markets."
Lucid reviewed multiple opportunities before selecting KAEC in
Saudi Arabia as the optimal
location and opportunity for its first international manufacturing
facility. The new manufacturing hub will be fully owned by Lucid
and enable the company to meet growing international demand for
luxury electric vehicles. Lucid also expects to benefit from the
availability of competitively-priced commodities and energy and a
newly emerging domestic supply chain, and a factory location that
facilitates global logistics. The company further expects to be
able to access financing to build and equip the manufacturing
facility and to train automotive workers.
Lucid plans to establish operations at KAEC for re-assembly of
Lucid Air vehicle "kits" that are pre-manufactured at the company's
U.S. AMP-1 Manufacturing Facility in Casa
Grande, Arizona, and, over time, for production of complete
vehicles. At its peak, the company expects to manufacture up to
150,000 vehicles per year at the KAEC facility. Construction of the
plant is expected to start in the first half of 2022. Vehicles in
the initial phase will be slated for the market in Saudi Arabia, but Lucid plans to export
finished vehicles to other global markets, including exclusive
models designed to appeal to Lucid's discerning customers in the
region and beyond. Lucid's AMP-1 in Arizona will continue to serve as the
company's central manufacturing hub, with the Lucid Production
System and other manufacturing technologies refined in the United States before deployment at other
factory sites. Lucid has already commenced the second phase of
construction at AMP-1 to add 2.85 million square feet of space,
with plans to further expand to an annual production capacity of
365,000 vehicles in Arizona. The
company expects that its production capacity in Arizona and Saudi
Arabia will exceed 500,000 vehicles per year in aggregate
when each facility reaches its target capacity.
Lucid anticipates that Saudi
Arabia's efforts to foster an automotive ecosystem through
its Saudi Vision 2030 should yield cost savings for Lucid as well
as environmental benefits, with reduced transportation of product
to the customer. The project should also enable opportunities
for Saudi Arabia to diversify and
transition from fossil fuels to sustainable energy and
transportation. Lucid expects to employ several thousand people at
its KAEC facility once full production capacity is established, the
majority of which are expected to be Saudi Arabian citizens. Lucid
has established an internship program with the PIF to provide
educational opportunities and training for Saudi Arabian citizens
at Lucid's facilities in California and Arizona to develop talent for operations in
Saudi Arabia. The company, in
addition, will build and run dedicated training centers in KAEC to
support skills development for the workforce.
PIF has been partnering with leading innovators globally such as
Lucid, which demonstrates PIF's commitment to shape the economies
of the future and drive the economic transformation of Saudi Arabia in line with Saudi Vision
2030.
"Today, we take 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," said His Excellency Khalid Al-Falih, Minister
of Investment of Saudi Arabia.
"Establishing Lucid's new manufacturing hub in the Kingdom of Saudi Arabia is aligned with our
national priority of diversifying the economy, and more
specifically in growing and diversifying the industrial sector as
part of the Kingdom's Vision 2030 and The National Industrial
Development & Logistics Program," said His Excellency Bandar
Alkhorayef, Saudi Arabia's
Minister of Industry and Mineral Resources and Chairman of SIDF.
"We are proud to partner with Lucid to enable this new industry in
Saudi Arabia, which is one of the
future's most complex and technology-dependent industries, and a
major contributor to the supply chain development of other related
industries that intersect with auto manufacturing." His Excellency
added "We look forward to working with Lucid and other leading
companies as we continue to build out our global competitiveness,
relying on Saudi Arabia's many
qualitative advantages, starting with its proven human resources,
its industrial capabilities and its quality digital and physical
infrastructure, to its advantageous geographical location in the
region."
"Lucid Group's landmark decision to establish its first
international plant in KAEC marks a significant milestone in our
journey to become a leading-edge city with a world-class
manufacturing and logistics hub," said Cyril Piaia, CEO of
Emaar, The Economic City, the master developer of
KAEC. "We are proud that KAEC will serve as a global launchpad
for new sustainable mobility innovations such as electric vehicles,
furthering its standing as a vision-ready platform that supports
Saudi Vision 2030 objectives."
"The U.S. government welcomes Saudi
Arabia's effort to diversify its economy and fight climate
change," said U.S. Chargé d'Affaires Martina Strong, the head of
the U.S. Mission to the Kingdom of Saudi
Arabia. "This announcement shows it can do both, through
partnership and engagement with innovative American companies."
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 Dream
Edition features an official EPA estimated 520 miles of range or
1,111 horsepower. Customer deliveries of Lucid Air, which is
produced at Lucid's new factory in Casa
Grande, Arizona, are underway.
Forward-Looking Statements
This press release 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
plans, strategies, and expectations regarding its future
manufacturing capabilities and facilities in both Saudi Arabia and Arizona; expected value to Lucid relating to
manufacturing in Saudi Arabia;
Lucid's expectations regarding availability of commodities and
energy and supply chain; the estimated economic value relating to
Lucid's selection of KSA for its manufacturing site; environmental
benefits; timing of construction; future production capacity;
availability of financing; and consumer demand. Forward-looking
statements inherently involve risks and uncertainties that could
cause results to differ materially. Such risks and
uncertainties include those identified in the section titled "Risk
Factors" in Lucid's annual and quarterly reports filed with the
Securities and Exchange Commission. Lucid undertakes no
obligation to update forward-looking statements for revisions or
changes after the date of this release, except as required by
law.
Media Contact
media@lucidmotors.com
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SOURCE Lucid Motors