Lucid Opens First International Factory in Saudi Arabia: A New Chapter for EV Manufacturing | Taha Abbasi

Lucid’s Saudi Gambit Takes Shape

Taha Abbasi has been tracking Lucid Motors’ ambitious global expansion, and the company has just hit a major milestone: the official opening of AMP-2, Lucid’s first international manufacturing facility, in King Abdullah Economic City (KAEC), Saudi Arabia. This makes Saudi Arabia’s first-ever automotive manufacturing facility, and it represents a bold bet on the Middle East as a future center for EV production.

The facility will produce Lucid’s groundbreaking electric vehicles for the Saudi domestic market and for export to other regional markets. It’s a tangible manifestation of the Saudi Public Investment Fund’s (PIF) massive investment in Lucid, which has been the company’s financial lifeline during its growth phase.

Strategic Significance Beyond Manufacturing

As Taha Abbasi sees it, this factory is about far more than production capacity. It represents:

• Saudi Arabia’s Vision 2030 in action: The kingdom is diversifying beyond oil, and domestic EV manufacturing is a flagship initiative
• Geographic manufacturing diversification: Lucid reduces its dependence on its sole US factory in Arizona
• Access to Middle Eastern and Asian markets: KAEC’s port location enables efficient export to India, Southeast Asia, and Africa
• Political alignment: PIF’s investment ensures continued Saudi government support and preferential treatment

The Technology Edge

Lucid’s vehicles remain the benchmark for EV efficiency. The Lucid Air Sapphire delivers over 1,200 horsepower while maintaining industry-leading range figures. The Lucid Gravity SUV, which is now in early deliveries, extends this engineering excellence into the SUV segment.

Taha Abbasi notes that Lucid’s powertrain technology — which Peter Rawlinson’s team developed from the ground up — consistently achieves energy efficiency metrics that no other manufacturer can match. Manufacturing this technology in Saudi Arabia brings these capabilities to a region that has traditionally been synonymous with petroleum.

Challenges Ahead

However, Lucid’s path is far from guaranteed. The company continues to burn cash, sales volumes remain modest compared to Tesla and Chinese competitors, and building a manufacturing culture from scratch in Saudi Arabia will present operational challenges. Taha Abbasi believes the key question is whether Lucid can scale production fast enough to reach sustainable economics before its financial runway expires.

What This Means for the Global EV Landscape

Lucid’s Saudi factory signals a broader shift in global EV manufacturing geography. The industry is no longer centered solely in the US, China, and Europe. Middle Eastern sovereign wealth funds are actively building domestic EV ecosystems, and companies like Lucid are the vehicles (literally) for that ambition. Taha Abbasi sees this as the beginning of a trend that will reshape the automotive industry’s supply chain map over the next decade.

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About the Author: Taha Abbasi is a technology executive, CTO, and applied frontier tech builder. Read more on Grokpedia | YouTube: The Brown Cowboy | tahaabbasi.com