American electric vehicle manufacturer Lucid Group recently hosted a ceremonial signing event setting the stage for the construction of its AMP-2, a world-class production factory in Saudi Arabia.

Construction of the plant is likely to commence shortly, and at its peak, Lucid expects to manufacture up to 155,000 vehicles per year at the facility.

The event celebrated the agreements signed in February 2022 with the Ministry of Investment of Saudi Arabia (MISA), the Saudi Industrial Development Fund (SIDF), Emaar, The Economic City, at King Abdullah Economic City (KAEC) and Gulf International Bank (GIB).

The agreements are estimated to provide financing and incentives to Lucid of up to $3.4 billion in aggregate over the next 15 years to build and operate a manufacturing facility in Saudi Arabia. The factory is situated in KAEC’s ‘Industrial Valley,’ close to King Abdullah Port along the main Red Sea trading corridor, an area which has handled more than a third of kingdom’s Western Region container volumes. Lucid’s Middle East regional headquarters in Riyadh has been operational since last year.

At AMP-2, Lucid plans to establish operations initially for re-assembly of Lucid Air vehicle “kits” that are pre-manufactured at the company’s US AMP-1 facility in Arizona, and, over time, for production of complete vehicles.