Saudi Arabia Grants Operating License to Lucid Motors for EV Manufacturing Plant

JEDDAH, Saudi Arabia, September 22, 2023 - Underscoring Saudi Arabia's ambitious journey towards economic diversification and global prominence in the electric vehicle (EV) industry, California-based EV startup Lucid Motors (LCID) has been granted a coveted operating license by the Economic Cities and Special Zones Authority (ECZA) In a meticulously coordinated event hosted at the ECZA office in KAEC. This license heralds the commencement of operations at Lucid's state-of-the-art EV manufacturing unit located in the heart of King Abdullah Economic City (KAEC).

Lucid Motors, a California-based EV startup renowned for its pioneering strides in sustainable luxury car design and production, is set to become a linchpin in Saudi Arabia's quest to solidify its position as a premier global hub for electric vehicles.

The newly licensed facility, nestled within KAEC, sprawls over a colossal expanse of 1.35 million square meters, commanding an impressive 31% of KAEC's Special Economic Zone (SEZ) auto hub. This cutting-edge manufacturing marvel is poised to set unparalleled industry standards and is a testament to Saudi Arabia's vision of becoming a trailblazer in sustainable mobility.

Nabil Khojah, Secretary-General of ECZA, extolled the efficiency and robust capabilities of Saudi Arabia's Special Economic Zones. He lauded the success of the government's dynamic partnerships and cooperation that catalyzed the rapid establishment of this world-class EV manufacturing unit.

Khojah also underscored Saudi Arabia's fostering of a business-friendly environment, reflecting the nation's unwavering commitment to nurturing and empowering investors. This milestone reflects Saudi Arabia's resolute determination to forge a forward-looking transportation landscape, characterized by reduced emissions and the promotion of clean, sustainable mobility.

Faisal Sultan, Lucid's Vice President and Middle East Managing Director, accentuated the monumental importance of this facility. As Lucid's inaugural international plant and Saudi Arabia's pioneering EV manufacturing facility, it aspires to redefine the boundaries of the automotive industry. The facility is poised to supply the Saudi market with cutting-edge, locally assembled electric vehicles.

Sultan asserted, "As we collectively work towards Vision 2030 and a more sustainable and diversified economy, we look forward to attracting, training, and retaining a brand-new workforce of automotive professionals."

Cyril Piaia, CEO of Emaar, The Economic City – the visionary developer behind KAEC – expressed unequivocal confidence in Lucid's transformative role. Lucid's presence is poised to catalyze job creation, technological advancement, and investment attraction, thus galvanizing the local economy and propelling KAEC towards its aspiration of becoming the automotive capital of the region.

This groundbreaking achievement aligns seamlessly with Saudi Arabia's overarching economic goals enshrined in "Vision 2030." The vision, which encompasses the target of having 30% of vehicles in Riyadh powered by electricity, underscores Saudi Arabia's unswerving commitment to fostering a sustainable and diversified economic landscape.

Lucid Motors' journey in Saudi Arabia has been bolstered by a strategic partnership with the Public Investment Fund (PIF), Saudi Arabia's sovereign wealth fund. In June, PIF invested an additional $1.8 billion in Lucid Motors, solidifying its ownership of approximately 60.5% of the company's common stock. This partnership has been instrumental in supporting Lucid's expansion efforts.

Furthermore, Lucid Motors recently announced its second-quarter financial results. During the earnings call, the company's CEO, Peter Rawlinson, shared that the company's first overseas plant in Saudi Arabia was expected to start limited production of Lucid Air EVs in September. This underscores the rapid progress made by Lucid Motors in establishing its manufacturing presence in the Kingdom.

The issuance of an operating license to Lucid Motors for its KAEC manufacturing unit represents a watershed moment in Saudi Arabia's voyage towards global leadership in the electric vehicle industry. Lucid's presence within the Kingdom promises to be a crucible of innovation, employment generation, and a driving force behind Saudi Arabia's economic diversification endeavors.