The government of the Kingdom of Saudi Arabia has announced the conclusion of an agreement with Lucid Motors to purchase a minimum of 50,000 and up to 100,000 electric vehicles over the next ten years. This initiative aims to diversify its vehicle fleet to be more environmentally friendly. This agreement is a significant step aligned with the goals of Saudi Vision 2030, which seeks to achieve extensive reforms in the economy, society, quality of life, and the diversification of the economy, while creating new sectors compatible with the future and generating job opportunities for citizens.
The agreement also aligns with the Saudi Green Initiative and the Middle East Green Initiative, previously announced by Crown Prince and Deputy Prime Minister Prince Mohammed bin Salman. It reflects the government's efforts to diversify its fleet with the aim of reducing carbon emissions and encouraging the use of sustainable transport.
Saudi Arabia's choice of Lucid, which plans to establish an assembly plant in the country that will gradually transition to full production, supports local content. This will contribute to economic diversification and generating returns in line with Vision 2030, as well as establishing the Kingdom as a major hub for regional and global manufacturing of next-generation electric vehicles, with Lucid targeting an annual production of up to 150,000 cars.
The government's objective in purchasing these vehicles is to diversify the technologies used in private transport as part of its efforts to develop vehicle emissions management technologies. This includes, but is not limited to, the production of electric vehicles using modern technologies, advanced low-emission fuel development programs, and the testing and development of hydrogen fuel cell vehicle technologies.
The signing of this agreement comes at a time when there is a noticeable increase in global demand for electric vehicles, with many other governments also seeking similar types of agreements. It also represents an opportunity for the Kingdom to collaborate with Lucid in developing new models and vehicles that meet the needs of the government fleet.
