Saudi Arabia has inaugurated its first electric vehicle manufacturing facility in Jeddah as part of the Kingdom ambitious Vision 2030 economic diversification programme. The state-of-the-art plant, a joint venture between the Public Investment Fund and American luxury EV maker Lucid Motors, represents a total investment of $3.4 billion and marks a historic milestone in the Kingdom industrial transformation.

The facility spans over 300,000 square metres and incorporates the latest advances in automated manufacturing technology. Initial production capacity is set at 15,000 vehicles annually, with a phased expansion plan to reach 150,000 units per year by 2030. The first model to roll off the production line will be the Lucid Air sedan, followed by the highly anticipated Gravity SUV designed specifically with Middle Eastern consumers in mind.

The plant will create over 3,000 direct jobs and an estimated 12,000 indirect positions across the supply chain, contributing significantly to the Kingdom goal of reducing unemployment and developing a skilled industrial workforce. A dedicated training centre adjacent to the factory will provide Saudi nationals with specialised education in EV manufacturing, robotics, and quality control.

Beyond manufacturing, the project includes plans to establish a regional research and development centre focused on battery technology optimised for hot climate conditions. Saudi Arabia extreme temperatures present unique challenges for EV batteries, and the R&D facility will work on developing thermal management systems that maintain optimal battery performance even in temperatures exceeding 50 degrees Celsius. The Kingdom position as a major global energy player gives it unique insights and resources to contribute to the advancement of electric vehicle technology.