Lucid Group, Inc., an innovative electric vehicle (EV) startup, is embarking on a significant expansion in Saudi Arabia. This move aims to establish a full-scale vehicle manufacturing unit, operating out of King Abdullah Economic City (KAEC) along the Red Sea. The facility is a crucial element of Lucid’s global growth strategy.
Expansion Plans in Saudi Arabia
Lucid intends to ramp up production at the KAEC facility over the next few years, targeting an annual capacity of 150,000 vehicles by 2029. Although the exact production start date remains undisclosed, the company is actively preparing by moving heavy machinery and equipment to the site.
- Location: King Abdullah Economic City, Saudi Arabia
- Target annual production: 150,000 vehicles by 2029
- Current preparations: Heavy machinery and equipment installation
Support from Saudi Investment
The Public Investment Fund (PIF) of Saudi Arabia is Lucid’s largest shareholder, holding over 50% of the company. Since 2018, PIF has invested more than $8 billion in Lucid, providing essential financial support for the company’s global ambitions.
Transition from Assembly to Manufacturing
Lucid’s full-scale vehicle production will shift the KAEC facility from merely an assembly plant to a comprehensive manufacturing site. This includes local production of car bodies, battery packs, and final assembly stages.
Implications for the Saudi Automotive Industry
This development is a pivotal step for Saudi Arabia, which aims to cultivate a domestic automotive manufacturing sector. Currently, Lucid is the only manufacturer producing vehicles in Saudi Arabia, but this may soon change as other automakers explore opportunities in the region.
- New competitors: Hyundai and local manufacturer Ceer
- Incentives: 0% taxes and benefits in special economic zones
Lucid’s increased production capabilities reflect recent achievements, with the company producing over 8,400 vehicles in the last quarter of 2025. This brought the total annual production to 18,378 vehicles, doubling the previous year’s output.
Long-term Goals
Lucid’s commitment to local production aligns with Saudi Arabia’s vision to decrease oil dependence and position itself as a clean energy leader. Producing EVs domestically will foster job creation, technology transfer, and enhance exports in the rapidly evolving global EV market.
As the KAEC facility gears up for production, it is poised to play a vital role in Lucid’s long-term strategic growth, capitalizing on government support and the burgeoning demand for electric vehicles.
