Ironies of fate, Lucid will manufacture electric cars on oil wells – News – Hybrids and Electric

Sometimes fate is capricious. So much so that an electric car manufacturer, in this case Lucid Motors, could end up manufacturing its cars without local emissions in Saudi Arabia, one of the world’s richest oil regions.

US manufacturer Lucid is in talks with Saudi Arabia to build a second electric car factory in Jeddah city, on the shores of the Red Sea, as he has learned Car news citing sources close to the negotiations. Jeddah is the second largest city in Saudi Arabia and its commercially important port is the largest in the country.

California-based Lucid is looking to expand its business – despite not yet having mass-produced cars – with a Middle East location that puts it relatively midway between Europe and Asia. For its part, Saudi Arabia seeks to diversify its economy, in which oil has played – and continues to play – an absolutely fundamental role. As of June 2020, Saudi Arabia was the second largest oil producing country in the world, with 11.8 million barrels a day, only behind the United States.

This has allowed him to amass huge amounts of money, thanks to which he can invest in a multitude of companies and sectors around the world. Currently the Saudi sovereign wealth fund It is one of the ten largest investment funds in the world.

It is still paradoxical that an electric car brand is going to manufacture its vehicles in a land that is prolific in oil wells. However, it has a logical explanation. And is that Saudi Arabia owns more than 50% of Lucid through its sovereign fund; now, it will provide much of the investment needed for this second factory. Although negotiations are well under way to establish the factory in King Abdullah Economic City, nothing is confirmed yet. The city of Neom is another possibility that is being considered.

At the moment, however, Lucid has a factory in Arizona (United States). There they plan to start manufacturing the Lucid Air in the spring of this year; at full capacity, they expect to produce 400,000 electric cars a year. In addition to the Air, which costs between $ 69,000 and $ 169,000 depending on the version, the company plans to launch a more affordable saloon and an SUV in the future.

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