What's new

Saudi Arabia Targets Carmaking Big League With Lucid Tie-Up

Lucid quarterly reports disappoint me big time. The name of the game is battery and supply chain. Also, an extreme shortage of Li battery material in the market. Right now China has a monopoly and controls the market on top shortage of chip.
 
Continuation of the construction work of the “AMP2” factory dedicated to the “Lucid” company for luxury electric vehicles, north of Jeddah, where it is scheduled to be operational by 2025, with a production capacity of 150,000 cars annually.


Good news.

Oil Giant Saudi Arabia Makes Big Plans for the Next Era of Batteries​



EV Metals Group signs FEED Agreement for Development of Lithium Chemicals Plant in Kingdom of Saudi Arabia​




EV Metals plans to invest $3bn in Saudi Arabia mineral processing plants​



Avass Group to Manufacture EVs, Lithium Batteries in Saudi Arabia


 

Lucid says Saudi Arabia’s PIF ‘very supportive’ as supply crunch hits production​

Top shareholder Saudi Arabia has been supportive of Lucid Group Inc. during a supply crunch that forced two production target cuts this year, an official at the carmaker said on Thursday.

Saudi Arabia’s Public Investment Fund, which owns just over 60 percent of the luxury electric-vehicle group, understands the challenges around supply chain issues and costs, said Faisal Sultan, managing director of global operations at Lucid. The company is not seeing pressure from investors.

For the latest headlines, follow our Google News channel online or via the app.


“The PIF have been very supportive,” he said on Bloomberg TV. “When the world re-emerges from the pandemic and the supply chain catches up, we will be ready. The company is on target to deliver cars to customers in Riyadh in the second quarter of next year,” he said.

Like other automakers, Lucid has been dealing with supply chain snags and resulting production hiccups. The firm halved its 2022 production target to 6,000 to 7,000 cars earlier this month -- the second time the Newark, California-based startup has reduced its output goal this year, from an original target of 20,000 cars.

The firm is seeing improvement as countries it has supply bases in open up, Sultan said. “We’re a new company, so definitely there will be challenges in the next three-four months, but we’re hoping things will get better by the end of this year.”

Lucid, which already has a deal to sell as many as 100,000 electric vehicles to Saudi Arabia over the next decade, continues to see a big opportunity in the region, Sultan said. “The government is very serious and they’ve been working very hard with us to make sure the environment is ready,” he said.

The Air model starts from about $80,000, a price point that will “attract a lot of people,” Sultan said. “They want to contribute towards sustainability and drive a luxury vehicle at the same time.”

Read more: Saudi government orders up to 100,000 electric vehicles from PIF-owned Lucid

 
My neighbor bought Lucid ... an excellent car, but the factory has cut down the production due to a shortage of chips and other materials.
 
My neighbor bought Lucid ... an excellent car, but the factory has cut down the production due to a shortage of chips and other materials.

V maker Lucid plans to raise $8bn through new offerings to boost capital​

Electric vehicle manufacturers globally are struggling to control costs amid supply chain disruptions and shortages of parts and raw materials

The grille of a Lucid Motors Air Grand Touring EV at the company's showroom in New York. Bloomberg

The grille of a Lucid Motors Air Grand Touring EV at the company's showroom in New York. Bloomberg

Sarmad Khan
Aug 30, 2022

Lucid Group, which counts Saudi Arabia's sovereign wealth fund, the Public Investment Fund, among its backers, plans to raise $8 billion through new offerings as the luxury electric vehicle maker looks to boost production.

Lucid aims to raise funds from mixed offerings and sell different types of securities “from time to time” with the size, price and terms to be determined at the time of sale, it said in a primary prospectus filed with the Securities and Exchange Commission in the US.

Lucid offerings may include selling “common stock, preferred stock, depository shares representing preferred stock, debt securities, warrants, purchase contracts or units in one or more offerings of up to $8bn in aggregate offering price”, the company said.

In addition, Lucid may issue up to 44.35 million common stocks, it said.

READ MORE
Davos 2022: Lucid's Saudi assembly plant likely to be one of three, minister says
Saudi Arabia establishes new investment promotion authority
PIF-backed EV maker Lucid to produce 150,000 cars a year at its Saudi factory

The company wants to boost its working capital amid supply constraints that have increased costs and crimped production.

EV manufacturers in recent quarters have struggled to control costs amid global supply disruption and shortages of parts and raw materials.

Manufacturers including Tesla have been burning cash in a bid to boost production. Tesla chief executive Elon Musk in June said the company’s plants in Germany and Texas were losing “billions of dollars”.

Earlier this month, Lucid halved its production forecast, citing extraordinary supply chain and logistics challenges. The company, which has a market value of about $27bn, now expects to produce between 6,000 and 7,000 luxury Lucid Air EVs this year, down from the 12,000 to 14,000 units targeted in February.

In May, Lucid signed a formal agreement with Saudi Arabian entities including the Ministry of Investment of Saudi Arabia, the Saudi Industrial Development Fund (SIDF), the Economic City at King Abdullah Economic City and Gulf International Bank to set up a factory in the kingdom.

The agreements are expected to provide financing and incentives worth $3.4bn to Lucid over the next 15 years, to build and operate the manufacturing centre that is expected to produce 155,000 units a year.

The production line would boost Lucid’s global production capacity to 500,000 EVs per year in the coming years, the company said at the time.

In April, Lucid also signed an agreement with Saudi government for the sale of 100,000 cars that will support Riyadh's sustainability drive.

The deal with the kingdom's Ministry of Finance — which will include the flagship Lucid Air and other future models — covers a 10-year period and includes an initial commitment to purchase 50,000 vehicles, plus an option for up to 50,000 additional cars over the same period.

The Lucid Air prototype electric vehicle, manufactured by Lucid Motors Inc., is displayed at the company's headquarters in Newark, California, U.S., on Monday, Aug. 3, 2020. The final specs and design of the Lucid Air are due to be unveiled at an event in September and executives say customers can now expect delivery of the first batch of Airs in spring 2021. Photographer: David Paul Morris/Bloomberg

Peter Rawlinson, chief technology officer for Lucid Motors Inc., speaks next to the company's Air alpha prototype vehicle during the 2017 New York International Auto Show (NYIAS) in New York, U.S., on Thursday, April 13, 2017. The New York International Auto Show, North America's first and largest-attended auto show dating back to 1900, showcases an incredible collection of cutting-edge design and extraordinary innovation. Photographer: Mark Kauzlarich/Bloomberg

Lucid Air prototype electric vehicles, manufactured by Lucid Motors Inc., are displayed at the company's headquarters in Newark, California, U.S., on Monday, Aug. 3, 2020. The final specs and design of the Lucid Air are due to be unveiled at an event in September and executives say customers can now expect delivery of the first batch of Airs in spring 2021. Photographer: David Paul Morris/Bloomberg

The Lucid Air prototype electric vehicle, manufactured by Lucid Motors Inc., is displayed at the company's headquarters in Newark, California, U.S., on Monday, Aug. 3, 2020. The final specs and design of the Lucid Air are due to be unveiled at an event in September and executives say customers can now expect delivery of the first batch of Airs in spring 2021. Photographer: David Paul Morris/Bloomberg

The front wheel of a Lucid Air prototype electric vehicle, manufactured by Lucid Motors Inc., is displayed at the company's headquarters in Newark, California, U.S., on Monday, Aug. 3, 2020. The final specs and design of the Lucid Air are due to be unveiled at an event in September and executives say customers can now expect delivery of the first batch of Airs in spring 2021. Photographer: David Paul Morris/Bloomberg

The Lucid Air prototype electric vehicle, manufactured by Lucid Motors Inc., is displayed at the company's headquarters in Newark, California, U.S., on Monday, Aug. 3, 2020. The final specs and design of the Lucid Air are due to be unveiled at an event in September and executives say customers can now expect delivery of the first batch of Airs in spring 2021. Photographer: David Paul Morris/Bloomberg

The interior of the Lucid Motors Inc. branded Air alpha prototype vehicle is seen during the 2017 New York International Auto Show (NYIAS) in New York, U.S., on Thursday, April 13, 2017. The New York International Auto Show, North America's first and largest-attended auto show dating back to 1900, showcases an incredible collection of cutting-edge design and extraordinary innovation. Photographer: Mark Kauzlarich/Bloomberg

A Lucid Motors Inc. branded Air vehicle sits on display during the 2017 New York International Auto Show (NYIAS) in New York, U.S., on Wednesday, April 12, 2017. The New York International Auto Show, North America's first and largest-attended auto show dating back to 1900, showcases an incredible collection of cutting-edge design and extraordinary innovation. Photographer: Andrew Harrer/Bloomberg

Lucid plans a phased global expansion with Saudi Arabia – the Arab world’s largest economy. Bloomberg

Updated: August 30, 2022, 13.54


Looks like a really nice car.
 

Saudi minister meets with Google, Zoom in California​


The official visit comes as Saudi Arabia seeks to grow its industrial sector.

Guests attend the Global AI 2020 (Artificial Intelligence) Summit in Riyadh on Oct. 21, 2020.

Guests attend the Global AI 2020 (Artificial Intelligence) Summit in Riyadh on Oct. 21, 2020. - FAYEZ NURELDINE/AFP via Getty Images
Adam Lucente

@Adam_Lucente

October 4, 2022

Saudi Arabia’s minister of Industry and Mineral Resources recently visited the US state of California in an effort to strengthen ties with American tech companies.

What happened: The official Saudi Press Agency reported Sunday that Minister Bandar bin Ibrahim Al-Khorayef met with the CEO of electric vehicle manufacturer Lucid Motors. He also visited the headquarters of search engine giant Google, video communications company Zoom, and the artificial intelligence (AI) and computer software company Nvidia.

The meetings focused on investment opportunities between the United States and Saudi Arabia in the industrial and mining sectors. The minister also discussed boosting cooperation and trade opportunities with the Silicon Valley-based companies, according to the agency.

Spokespeople for Google, Zoom and Lucid Motors did not immediately respond to Al-Monitor’s requests for comment. A spokeswoman for Nvidia declined to comment.

Why it matters: Saudi Arabia wants to grow its industrial and mining sectors per the Vision 2030 economic diversification initiative. The Gulf kingdom has had some success in this regard this year. More factories opened and investments into existing factories increased substantially during the first half of 2022, Ali Metwally reported for Al-Monitor recently.

Mining could relate Khorayef’s meeting with Lucid Motors due to the rare earth minerals needed to produce electric vehicles. Relatedly, Saudi Arabia recently signed mining agreements with Jordan and India.

Nvidia’s work in artificial intelligence is also noteworthy in the Saudi economic context. The Saudi oil giant Aramco in particular has expanded its support for AI initiatives this year.

Know more: Saudi Arabia already has a lot invested in Google. In August, a regulatory filing revealed that the Saudi Public Investment Fund has $464 million invested in Google’s parent company, Alphabet.

Read more: https://www.al-monitor.com/original...er-meets-google-zoom-california#ixzz7hMB4fzvG
 

Pakistan Affairs Latest Posts

Back
Top Bottom