Saudi Arabia, Lucid Motors ink agreement for buying 1,00,000 EVs
The Government of Saudi Arabia has announced that it has signed an agreement with Lucid Motors to purchase a minimum of 50,000 electric vehicles and up to 100,000 electric vehicles over ten years to diversify its fleet to be more environmentally friendly.
"This agreement is a significant move that supports the key objectives of Vision 2030 including diversifying and transforming the economy, society, and lives of the people of Saudi Arabia, building new sectors fit for the future, and creating skilled jobs for future generations. It also comes in alignment with the Saudi Green Initiative and the Middle East Green Initiative," the Saudi ministry of finance said in a statement.
The Saudi sovereign wealth fund, also known as the PIF, owns a considerable stake in Lucid, which has been selected, according to the ministry of finance, "as they are building a factory to assemble these vehicles within the Kingdom, which will transition over time to full production."
Saudi Arabia is setting up its first electric vehicle manufacturing plant in the country with Lucid as the government plans to ensure that 30 percent of all vehicles in the capital city Riyadh run on electricity by 2030.
The plant — the first for Lucid outside the US in Saudi Arabia —will have a capacity to produce up to 150,000 electric vehicles every year.
The ministry of finance said in the statement that this plant will support "the government's local content drive, diversify the economy, provide thousands of highly skilled job opportunities and provide economic benefit to the Kingdom in line with Vision 2030."
It will also help Saudi Arabia realize its ambition to be a major regional and global manufacturing base for the next generation of electric vehicles, the statement added.
"Saudi Arabia is placing this order now, as demand for electric vehicles is high, many other governments are considering taking orders. This also provides Saudi Arabia with the opportunity to work with Lucid on the development of new models and vehicles to suit the government's vehicular needs."