Lucid Group, a US electric vehicle manufacturer, announced that it will establish its first overseas plant in Saudi Arabia.
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Luxury car makers said in a press release Wednesday that the manufacturing facility could produce 155,000 cars a year, initially serving the local market. The vehicle will later be exported to the world market.
Lucid’s plant in Arizona can produce 350,000 units annually.
“That means we can accelerate our plans to produce 500,000 cars a year from the 2030 schedule to the middle of 2010,” CEO Peter Rawlinson told CNBC’s Hadley Gambling. “And that’s really important because the planet can’t wait.”
The ongoing energy crisis “actually only facilitates the transition to battery-powered electric vehicles,” Rawlinson said.
“Currently, demand is doubling,” he said.
Saudi Arabia’s investment minister, Khalid Al Fari, said the Lucid plant was still in its infancy.
“I believe it will unleash the entire electric vehicle industry here in the kingdom. Our intention is not to stay at Lucido,” he told CNBC’s Hadley Gambling.
“There are other EV makers in advanced discussions with us that follow in the footsteps of Lucido,” he added.
Saudi Arabia also wants EV battery companies, suppliers and others to set up stores in the country, which could create 30,000 jobs, he said.
“As I said, I believe this is a catalytic investment decision … it’s a magnet that attracts many other investors,” Alfali said.
Lucid’s Rawlinson said the company wants to produce more than electric vehicles in Saudi Arabia, pointing out an energy storage system that can be linked to a solar power plant.
“This technique is ideal for this part of the world,” he said. “Remember, when the oil runs out, the sun keeps shining.”
As of 2021, Saudi Arabia The world’s second largest oil producer, According to the US Energy Information Administration. It also has 297.5 billion barrels of oil reserves, second only to Venezuela. World Population Review The ranking said.
Aramco, the kingdom’s state-owned oil company, Net income for the first quarter of 2022 was $ 39.5 billion, an increase of 82%.
Alfa Riff said the world still needs to invest in both fossil fuels and renewables to make the energy transition as smooth as possible.
He said Saudi Arabia is working on a transition from traditional fuels to cleaner energy, citing the Kingdom’s Green Initiative.
— CNBC’s Dan Murphy contributed to this report.
Lucid Group builds first factory in Saudi Arabia outside the United States
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