Lucid Strengthens Global Presence with Saudi Manufacturing Initiative

Lucid Group, Inc., an electric vehicle (EV) manufacturer, is set to enhance its global reach through a newly established manufacturing unit in Saudi Arabia. This development is a key element of Lucid’s strategy for international expansion.

New Manufacturing Facility in Saudi Arabia

The manufacturing plant is situated in King Abdullah Economic City (KAEC), overlooking the Red Sea. While Lucid has not specified a precise production start date, it intends to gradually increase output in the coming years.

Production Goals

• Annual Capacity: Lucid aims to achieve a production capacity of 150,000 vehicles by 2029.
• Current Progress: Heavy machinery and equipment have already been relocated to the facility as preparations for full-scale production continue.

This shift from assembly to full vehicle production is vital not just for Lucid, but for Saudi Arabia’s ambition to develop a thriving automotive manufacturing sector.

Collaborations and Investments

Saudi Arabia’s Public Investment Fund (PIF) remains Lucid’s principal shareholder, owning over 50% of the company. Since 2018, PIF has invested approximately $8 billion in Lucid, providing essential financial support for its global growth initiatives.

The transition to producing complete electric vehicles locally will enhance local job creation, technology transfer, and export potential.

Local Competition

Currently, Lucid stands as the only manufacturer of electric vehicles made in Saudi Arabia. However, competition is likely to intensify as other major automakers, including Hyundai, are considering building their own facilities in the country. Additionally, a local EV manufacturer, Ceer, is set to launch its first electric vehicle.

• Government Incentives: The Saudi government offers zero taxes and various other incentives within special economic zones to attract manufacturing companies.

Impact on Lucid’s Growth Strategy

Lucid has seen an increase in overall vehicle production, achieving notable numbers in recent years. In the last quarter of 2025, the company produced over 8,400 vehicles, doubling its annual production from the previous year to a total of 18,378 vehicles.

This successful increase in production strengthens Lucid’s rationale for expanding its manufacturing capabilities abroad and supports its ambitions for global market growth.

Long-term Vision

Establishing a manufacturing facility in Saudi Arabia not only positions Lucid for business success but also underpins the country’s efforts to diversify away from oil dependence. The move aims to solidify Saudi Arabia’s status as a hub for clean energy and technology.

As Lucid ramps up production, the KAEC facility is expected to be instrumental in driving the company’s future expansion and success in the EV market.