Lucid gets permit to operate in new Saudi economic zone

Saudi Arabia’s Economic Cities and Special Zones Authority has issued US electric vehicle maker Lucid Group a permit to operate a manufacturing unit at the newly-launched King Abdullah Economic City (KAEC) special economic zone.

“This marks a successful kickoff for the new SEZs launched earlier this year, showcasing a promising avenue for innovation and growth,” the authority said in a social media post.

The facility will cover more than 1.35 million square metres, occupying 31 percent of the KAEC SEZ’s designated area for the automotive industry.

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Saudi-listed developer Emaar The Economic City signed a 25-year lease agreement with Lucid in February 2022 for a land plot in KAEC’s Industrial Valley for an auto manufacturing and assembly facility. The contract was valued at SAR113.5 million ($30.26 million).

Public Investment Fund-backed Lucid last month said that its manufacturing facility in Saudi Arabia is well underway, with vehicle re-assembly operations expected to commence this month.

“At its peak, we expect to manufacture up to 155,000 vehicles per year at the facility,” the company said in its second-quarter earnings release.

Additionally, Lucid has finalised its purchase agreement with the Saudi government and initiated material shipments of vehicles to the kingdom.

In April last year the government agreed to buy up to 100,000 Lucid EVs over the next 10 years.

PIF owns 60.2 percent of Lucid, with its investments reaching $5.4 billion since 2018.

In May, Lucid announced its latest capital raise of $3 billion, including a $1.8 billion investment by a PIF affiliate. The transaction was successfully closed in June.