Friday, December 1, 2023

Saudia Arabia Start Producing 5000 Electric Vehicles Per Year

Saudi Arabia is actively pursuing a sustainable future by making significant strides in the realm of electric vehicles (EVs). A noteworthy development in this initiative is the commencement of the assembly of 5000 electric vehicles annually, showcasing the country’s rapid shift towards electrification.

Central to Saudi Arabia’s electrification drive is the establishment of Lucid Group’s first international manufacturing plant in Jeddah. This strategic move aligns with the nation’s strong commitment to advancing electrification, a vision spearheaded by the Saudi sovereign wealth fund, the primary shareholder in Lucid Group.

The entry of Lucid Group into Saudi Arabia is part of a broader collaboration with the sovereign wealth fund, which holds a significant ownership stake of slightly over 60% in the electric vehicle company. Motivated by the objective of diversifying the country’s revenue sources, the sovereign wealth fund has committed to procuring up to 100,000 vehicles from Lucid over the next decade. This partnership positions Lucid as a key player in Saudi Arabia’s ambitious plan to establish a robust and flourishing electric vehicle ecosystem.

The manufacturing facility, known as Lucid’s AMP-2, is strategically located in the King Abdullah Economic City (KAEC) and is specifically geared towards assembling the luxury electric sedan, Lucid Air. Initially, the plant has a production capacity of 5,000 units per year, reflecting Lucid’s dedication to meeting the growing demand for premium electric vehicles in the region.

As the market for electric vehicles continues to expand, the facility is designed to scale up production significantly, with a target of reaching 155,000 units annually. This underscores Lucid’s role as a major contributor to the sustainable transportation landscape in the region.

In addition to Lucid’s initiatives, industry leader Tesla is reportedly in preliminary discussions to establish its manufacturing presence in Saudi Arabia. If materialized, this move would further elevate the country’s position in the global electric vehicle market, contributing significantly to the diversification of its economy.

In summary, Saudi Arabia’s foray into electric vehicle manufacturing, particularly through partnerships with companies like Lucid Group, signals a deliberate and substantial commitment to embracing sustainable and eco-friendly modes of transportation, while also positioning the nation as a key player in the global electric vehicle landscape.

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