Lucid Motors, a California-based electric vehicle manufacturer, said in a press release that it has inked an agreement to purchase 100,000 electric vehicles (EVs) from Saudi Arabia, the world’s largest oil exporter.
As per the deal, the Middle Eastern nation has committed to purchasing 50,000 automobiles initially, with the option to purchase up to another 50,000 vehicles during the same period.
“Supplying up to 100,000 Lucid EVs in Saudi Arabia signals another crucial step in our acceleration of sustainable mobility around the world,” stated Peter Rawlinson, CEO, and CTO of Lucid.
“By delivering our sophisticated premium EVs to Saudi Arabia, we are happy to be aiding Saudi Arabia in reaching its sustainability objectives and net-zero aims, as articulated by Saudi Vision 2030 as well as the Saudi Green Initiative,” Rawlinson continued.
The Saudi government has agreed to buy Lucid’s vehicles, including the capacious Lucid Air as well as other future models, developed and assembled at Lucid’s present Arizona factory and its prospective international manufacturing site in Saudi Arabia, as part of the agreement. The annual order quantity is planned to span from 1,000 to 2,000 cars per year, increasing to between 4,000 to 7,000 vehicles per year commencing in 2025, with vehicle deliveries starting no later than the 2nd period of 2023.
Supporting the 2030 Vision
“This agreement is a crucial step toward achieving Vision 2030’s key goals, which include diversifying and modernizing Saudi Arabia’s economy, society, and people’s lives, as well as developing new sectors and providing skilled employment for future generations. It also aligns with the Saudi Green Initiative as well as the Middle East Green Initiative “Saudi Arabia’s finance ministry issued a statement.
This deal will aid Saudi Arabia’s efforts to diversify its economy, create thousands of high-skilled job opportunities, and improve the Kingdom’s economy in accordance with Vision 2030.
The vehicles’ purchase price will be decided depending on the lower standard retail price in Saudi Arabia and the conventional retail price in the United States, plus logistics and importation charges, as well as other expenses of delivering and homologating automobiles to Saudi Arabian requirements.
The PIF (Public Investment Fund of Saudi Arabia), which controls 61 percent of Lucid, invested heavily in the company in 2018. In 2021, the firm received $1 billion in funding from PIF to construct a manufacturing plant in Saudi Arabia, however, the facility is still a blueprint.
For the time being, Lucid will transport its EVs from its Arizona manufacturing to Saudi Arabia.
Though it may seem paradoxical for the world’s largest oil exporter to buy so many EVs, we can’t deny that it is helpful for the environment.