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Wednesday, Jan 14, 2026

Lucid Poised to Begin Full EV Manufacturing in Saudi Arabia by Late 2026

Electric carmaker advances its transition from assembly to complete production at its King Abdullah Economic City plant, marking a strategic milestone for Saudi automotive ambitions
Lucid Motors is on track to begin full manufacturing of electric vehicles in Saudi Arabia by late 2026, as the company upgrades its King Abdullah Economic City facility from basic assembly to complete production capabilities.

The expansion reflects a major strategic shift for the California-based firm and its majority owner, the Saudi Public Investment Fund, towards establishing Saudi Arabia as an international hub for electric vehicle manufacture and export.

The AMP-2 plant near Jeddah, initially focused on semi-knocked-down assembly of Lucid Air sedans, is now being equipped with the machinery and infrastructure necessary to build vehicles from the ground up, including body assembly, paint shops and powertrain integration.

The move to full manufacturing coincides with the planned launch of Lucid’s new midsize SUV and other models designed for broader global markets.

Industry observers say the facility’s evolution will significantly expand Lucid’s production footprint beyond its initial reassembly operations and support exports beyond the Middle East.

Deliveries of Saudi-made vehicles to markets such as Europe and Asia are expected to begin in twenty twenty-seven, once factory upgrades are complete and local production lines are fully operational.

Lucid’s annual production target for the expanded facility is up to one hundred fifty-five thousand vehicles, signalling the Kingdom’s ambition to compete with established EV manufacturing hubs worldwide.

Saudi Arabia’s investment in Lucid forms a central part of broader industrial diversification efforts under Vision 2030, aimed at reducing dependence on oil-derived revenues and fostering high-technology manufacturing sectors.

The AMP-2 site is also intended to act as a catalyst for developing a local supply chain and workforce skilled in advanced automotive production.

By securing the “Saudi Made” designation and integrating local talent development, Lucid’s Saudi operations are expected not only to meet domestic EV demand but also to contribute to global electric mobility trends.

Completion of production infrastructure and commencement of full manufacturing later this decade are seen as key achievements in the Kingdom’s strategy to attract foreign capital and elevate its role in future-focused industries.
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