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RIYADH: Lucid Group, in which Saudi Arabia’s Public Investment Fund holds a major stake, has signed a deal for the construction of a plant in the Kingdom that will produce 150,000 electric vehicles per year.

The company signed agreements on Feb. 28 with the Ministry of Investment of Saudi Arabia, the Saudi Industrial Development Fund, and the Economic City at King Abdullah Economic City.

Lucid estimates its first international manufacturing plant in Saudi Arabia may lead up to $3.4 billion of value over 15 years, it said in a statement.

Once full manufacturing capacity is achieved, the firm plans to employ thousand of workers at its KAEC factory, the majority of whom will be Saudi nationals.

Lucid believes that Saudi Arabia’s initiatives to build an automotive ecosystem through its Saudi Vision 2030 would result in cost savings for the company as well as environmental benefit by reducing traditional transportation to customers. 

“Attracting a global leader in electric vehicles such as Lucid to open its first international manufacturing plant in Saudi Arabia reflects our commitment to creating long-term economic value in a sustainable, enduring, and globally integrated way” said His Excellency Khalid Al-Falih, Minister of Investment of Saudi Arabia, in a press release on Monday.

“The US government welcomes Saudi Arabia’s effort to diversify its economy and fight climate change,” said Martina Strong, the head of the US mission to Saudi Arabia