Stock Groups

Lucid Group to build first factory outside the U.S. in Saudi Arabia


Lucid Group, a U.S. manufacturer of electric vehicles announced that it will open its first factory overseas in Saudi Arabia.

Bloomberg | Bloomberg | Getty Images

U.S. maker of electric vehicles Lucid GroupSaudi Arabia will be its first factory overseas. the company has announced.

In a Wednesday press release the luxury car manufacturer stated that the facility can produce up to 155,000 vehicles per year. It will first serve the local marketplace. Later, the vehicles will be exported to international markets.

Lucid can make 350,000 units in Arizona’s factory.

CNBC’s Hadley Gamble reported that CEO Peter Rawlinson said, “That means we are able to accelerate plans to produce half-a million cars per year starting in 2030 and ending in mid-decade.” And that’s very important, because the world can’t wait.”

Rawlinson stated that the ongoing energy crisis only “fuels” the transition to electric cars.

He said, “The demand for our products is increasing.”

Large-scale EV Industry ambitions

Khalid al-Falih (Saudi Arabian minister for investment) said that the Lucid Factory is only the start.

According to Hadley Gamble, he stated: “I think it unleashes all the industry of electric vehicles in the kingdom. Our intent isn’t to stop with Lucid.”

“We also have other EV makers that are in advanced talks with us, that will follow Lucid’s footsteps,” he said.

He said that Saudi Arabia wants EV suppliers, companies and other businesses to open up in its country. This could lead to 30,000 new jobs.

“We believe, like I said, that this is a catalytic investment decision … it’s a magnet that will attract a lot of other investors,” al-Falih said.

Lucid’s Rawlinson stated that the company wants to make more electric vehicles in Saudi Arabia and pointed out energy storage systems which could be connected to solar photovoltaic plants.

He stated that this technology was ideal for the region. Remember, even if the oil runs out the sun will continue shining.

Saudi Arabia is the world’s largest oil producer as of 2021 world’s second largest producer of oil, according to the U.S. Energy Information Administration. The country also holds 297.5 billion barrels of oil reserves. This is second to Venezuela. a World Population ReviewRanking

Aramco was the kingdom’s oil state company. net income spike 82% to $39.5 billion in the first quarter of 2022.

Al-Falih stated that the world must continue to invest in fossil fuels as well as renewables, to ensure that the transition to clean energy is as seamless as possible.

Saudi Arabia has committed itself to its transition from conventional fuels to cleaner, and he cited the Kingdom’s environmental initiatives.

— CNBC’s Dan Murphy contributed to this report.