With an emerging global energy crisis, the world’s auto industry is taking a significant leap towards green technology. Electric cars are replacing the conventional Internal Combustion Engines (ICE). In the coming decade, EVs running on roads will be the norm.
Taking a cue from others, Saudi Arabia also seems to have embarked on fostering a sustainable future. In a recent update, with the aim of a swift shift towards electrification, Saudi Arabia has started assembling 5000 electric vehicles annually.
Saudi Arabia’s Electrification Push
Lucid Group, the electric vehicle (EV) manufacturer, has officially inaugurated its first international manufacturing plant in Jeddah, Saudi Arabia. This strategic move aligns with Saudi Arabia’s commitment to electrification, a vision underscored by the nation’s sovereign wealth fund, the largest shareholder in Lucid Group.
Lucid Group’s foray into Saudi Arabia is part of a broader collaboration that involves the sovereign wealth fund, which owns just over 60% of the EV company.
The fund, driven by the vision to diversify the nation’s revenue streams, has committed to purchasing up to 100,000 vehicles from Lucid over the next decade. This partnership positions Lucid as a key player in Saudi Arabia’s endeavor to establish a robust electric vehicle ecosystem.
Situated in the King Abdullah Economic City (KAEC), Lucid’s AMP-2 facility is poised to assemble the luxury electric sedan, Lucid Air. With an initial production capacity of 5,000 units per year, the plant is a testament to Lucid’s commitment to meeting the growing demand for premium electric vehicles in the region.
As the market expands, the facility is designed to scale up its production to an impressive 155,000 units annually, solidifying Lucid’s role as a major contributor to the region’s sustainable transportation landscape.
Notably, industry leader Tesla is reportedly in early discussions to establish its manufacturing presence in Saudi Arabia. This move, if realized, would further amplify the country’s position in the global electric vehicle market and contribute to the diversification of its economy.
