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Lucid signs agreement with Saudi Arabia for 155k unit capacity manufacturing facility

Lucid signs agreement with Saudi Arabia for 155k unit capacity manufacturing facility

The Lucid Group held a ceremonial signing event today to commemorate the signing of agreements with Saudi Arabia in February 2022 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.

Khalid Al-Falih, Saudi Minister of Investment, said: “With today’s signing ceremony, we are taking a significant step toward Saudi Arabia’s ambition of diversifying its economy by establishing a new manufacturing base that will lead the Middle East region’s future mobility.”

Bandar Alkhorayef, the Minister of Industry, stated that the automotive industry in the Kingdom is one of the important sectors supported by the National Industrial Strategy (NIS)

. He added: “We look forward to working with Lucid and other leading companies while continuing to build our global expertise.”

Lucid examined a range of options before deciding on KAEC in Saudi Arabia, which is noted for its livability and sustainability, as the best location for the second of its worldwide network of electric vehicle manufacturing plants.

The new Saudi Arabian plant was also given the designation “AMP-2” (Advanced Manufacturing Plant #2), signifying its importance as the next cornerstone of Lucid’s vertically integrated worldwide production network.

The factory is located in KAEC’s ‘Industrial Valley,’ near King Abdullah Port on the main Red Sea commerce route, which has handled almost a third of Saudi Arabia’s Western Region container volumes.

Lucid’s Middle East regional headquarters in Riyadh has been operational since last year.

Lucid hopes to set up operations at AMP-2 to begin re-assembly of Lucid Air vehicle “kits” that are pre-manufactured at the company’s AMP-1 factory in Casa Grande, Arizona, and eventually to produce full vehicles.

Lucid expects building on the plant to begin soon, and the facility will be able to produce up to 155,000 vehicles per year at its peak.

The vehicles will initially be sold in Saudi Arabia, but Lucid intends to export finished automobiles to other parts of the world.

The Saudi Arabian Ministry of Finance (“MOF”) signed an agreement with Lucid in April 2022 to purchase at least 50,000 and perhaps up to 100,000 Lucid vehicles over ten years.

The committed volume order number is estimated to range from 1,000 to 2,000 vehicles per year, increasing to between 4,000 and 7,000 vehicles per year by 2025.

In keeping with Saudi Vision 2030, this agreement supports the government’s efforts to diversify the economy, create thousands of locally highly qualified job opportunities, and offer economic advantages to Saudi Arabia.

About Lucid Group

Lucid’s objective is to encourage the use of sustainable energy by developing cutting-edge technologies and the most appealing luxury electric vehicles centered on the human experience.

. The Lucid Air Grand Touring has a range of 516 miles and 1,050 horsepower according to the EPA. Lucid Air is currently being delivered to consumers in the United States from Lucid’s new manufacturing in Casa Grande, Arizona.

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