- The $360 billion Public Investment Fund,which is already a shareholder in Lucid, will provide much of the money for the site at the King Abdullah Economic City
- Lucid raised more than $1 billion from the PIF in 2018, an investment that was conditional on the firm developing a site in Saudi Arabia
As per a report by Bloomberg, Lucid Motors Inc. is in talks with Saudi Arabia’s sovereign wealth fund to build an electric vehicle factory potentially near the Red Sea city of Jeddah as per people familiar with the matter. The report added that this move could make a significant move for Lucid. Saudi Arabia is trying to become a Middle Eastern hub for manufacturing EVs, it added.
The report added that the $360 billion Public Investment Fund,which is already a shareholder in Lucid, will provide much of the money for the site at the King Abdullah Economic City, the people said, asking not be named because the discussions are private. Plans are advanced but could change, the people said. The report added that PIF and Lucid have also considered Neom, a new city being developed in the northwest of Saudi Arabia, as a possible site for the plant.
More than $1 billion from the PIF in 2018
The report added that the people said that Lucid raised more than $1 billion from the PIF in 2018, an investment that was conditional on the firm developing a site in Saudi Arabia. King Abdullah Economic City is about 60 miles (97 kilometers) north of Jeddah, the country’s second-biggest city.
After that, Lucid has unveiled plans for the Air, a $169,000 sedan that it claims is capable of being driven more than 500 miles (805 kilometers) on a single charge. It has also built a factory in the Arizona desert and deliveries to U.S. customers of the model are expected to start in the second quarter added the report.
The report added that the PIF is set to play a major role in Saudi development projects over the next few years as the government looks to cut spending and keep the budget deficit in check. Yasir Al Rumayyan, governor of the fund, said it will spend at least $40 billion locally this year and in 2022.