RIYADH: The Saudi government has announced that it has signed an agreement with Lucid Motors for the purchase of a minimum of 50,000 electric vehicles and up to 100,000 electric vehicles over a ten-year period with the aim of diversifying its floats to make it more environmentally friendly.
“This agreement is an important step that supports the key objectives of Vision 2030, including diversifying and transforming the economy, society and lives of the Saudi people, building new sectors fit for the future and creating skilled jobs for future generations. It also aligns with the Saudi Green Initiative and the Middle East Green Initiative,” the Saudi finance ministry said in a statement.
Read more: Riyadh will see its goal of 30% electric vehicles possible with the 1st Lucid factory in the Kingdom
Saudi Arabia’s sovereign wealth fund, also known as PIF, has a significant stake in Lucid, which was selected, according to the finance ministry, “because they are building a factory to assemble these vehicles within the Kingdom, which will pass on the full production time.
Saudi Arabia is setting up its first electric vehicle manufacturing plant in the country with Lucid as the government plans to ensure that 30% of all vehicles in the capital Riyadh run on electricity by 2030.
The plant – the first for Lucid outside the United States in Saudi Arabia – will have the capacity to produce up to 150,000 electric vehicles each year.
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The Ministry of Finance said in the statement that this plant will support “the government’s local content campaign, diversify the economy, provide thousands of highly skilled job opportunities and bring economic benefits 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 meet the government’s vehicle needs.