Saudi Arabia inaugurates its first automobile factory

Named AMP-2, this first factory is strategically located in King Abdullah’s economic city in Jeddah.

This factory will host the production of the ambitious Lucid brand. Owned 61% by the Gulf monarchy, the manufacturer flying the American flag sees itself as a major rival to Tesla in the coming years. This agreement allows the manufacturer to benefit from top-tier infrastructure and… an initial order of 50,000 models to equip the Saudi administrative services!

After a rocky start – launching a brand isn’t easy, Tesla knows this all too well – the Californian company is gaining momentum. Its Air sedan has been thoroughly developed, homologated, and is now being delivered to its first customers in North America (including Canada), Germany, and the Netherlands. A second model has been unveiled for commercialization in 2024, the SUV Gravity.

A factory worthy of Lucid’s ambitions

The factory will produce Lucid electric vehicles for Saudi Arabia and export them to other markets. A great opportunity for Saudi Arabia to enter the realm of zero-emission vehicle producers. And a tasty slap in the face for a nation built on black gold. In 2016, the Kingdom launched an ambitious plan called “Saudi Vision 2030”. Led by Crown Prince Mohammed bin Salman, it aims to produce 300,000 cars by 2030, of which 30% will be electric.

“We are thrilled to make history today in Saudi Arabia by opening the country’s first automobile factory, which will support the nation’s vision for a more sustainable and diversified economy,” said Peter Rawlinson, CEO and CTO of Lucid Group. “As Saudi Arabia pursues its virtuous goals by 2030, our facility will pave the way for the country’s electric automotive industry and its expansion. We look forward to delivering cars assembled in Saudi Arabia to customers in Saudi Arabia and beyond.”

A foot in America, the other in Saudi Arabia

Initially, the AMP-2 factory will only reassemble the “kits” of Lucid Air vehicles which are pre-fabricated at the American AMP-1 plant based in Casa Grande, Arizona. Its annual capacity is 5,000 cars. In a second phase, Lucid aims to expand AMP-2 to full vehicle production starting in 2025, with an additional annual capacity of 150,000 cars.

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