Saudi Arabia is rapidly transforming into a global hub for electric vehicles. By the end of 2026, Lucid Group will shift from assembly to full-scale electric vehicle production within the Kingdom. This milestone significantly advances Saudi Arabia’s plan to diversify its economy beyond oil and develop a homegrown automotive industry.
Full EV Manufacturing Set to Launch
After initially assembling vehicles from imported parts, Lucid will begin full electric vehicle production at its Jeddah factory by late 2026. Marc Winterhoff, interim CEO, stated the company is “preparing to transition from vehicle assembly to full electric vehicle manufacturing.”
The factory will now handle all production stages locally, from body fabrication to final assembly and testing. Consequently, the shift will create new jobs and cultivate engineering expertise. Moreover, it will foster a broader industrial ecosystem around electric vehicle technologies.
Strategic Importance for the Kingdom
Producing electric vehicles domestically supports Vision 2030, Saudi Arabia’s plan to diversify its economy and reduce reliance on oil. The Public Investment Fund, the Kingdom’s sovereign wealth fund and Lucid’s largest shareholder, provides financial backing and strategic guidance.
Winterhoff highlighted that the facility will not only serve local demand but also position Saudi Arabia as an export hub. Much of the output will target international markets. Therefore, Lucid’s transition to full production supports the Kingdom’s effort to create a competitive global EV industry.
Production Growth and Future Targets
Lucid has already increased vehicle output and deliveries. Production will surge in 2025, with deliveries rising in the U.S. and Middle East. By 2029, the Jeddah plant aims to reach full capacity, producing up to 150,000 vehicles annually. This milestone reflects both Saudi Arabia’s ambition and Lucid’s long-term commitment.
Conclusion
Shifting to full electric vehicle production enhances Saudi Arabia’s industrial profile and boosts its global EV competitiveness. By moving from assembly to full manufacturing, Lucid strengthens the Kingdom’s economic diversification. Additionally, it positions Saudi Arabia as a serious contender in the global EV market.
As production ramps up in 2026, Saudi Arabia’s shift from oil dominance to automotive innovation becomes tangible. This progress proves that strategic investment and careful planning can accelerate a nation’s entry into high-tech, future-focused industries.
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