Hyundai To Open New Plant In Saudi Arabia To Build EV And ICE Cars | Carscoops

Lucid’s Saudi Arabian plant is getting some company as Hyundai has announced plans to establish a “highly automated” manufacturing facility in the country.

The move comes after Hyundai and Saudi Arabia’s Public Investment Fund (PIF) signed a joint venture agreement. The company didn’t go into specifics, but the investment fund will hold a 70% stake in the joint venture and is likely putting up a lot of the money for the plant, which is expected to cost more than $500 million (£408 / €468).

Groundbreaking is slated to begin next year and the plant is scheduled to begin operations in 2026. It will have the capacity to build up to 50,000 units annually and Hyundai said the facility will make electric as well as internal combustion vehicles.

More: Lucid Opens New Plant In Saudi Arabia, Will Build The Air EV

Hyundai said the plant will “create thousands of jobs” as well as “accelerate the development of Saudi Arabia’s automotive and mobility ecosystem.” The company added, “The partnership is PIF’s latest initiative to elevate Saudi Arabia as a global automotive player, drive transformation in the sector, and boost manufacturing capabilities, infrastructure and supply chains in Saudi Arabia and beyond.”

While it’s not immediately clear what models will be made at the plant, Hyundai CEO Jaehoon Chang said “We are excited about the potential of this venture to drive significant advancements in vehicle production, fostering a sustainable and eco–friendly automotive future in the region.” He added, “Our joint efforts will create opportunities for innovation and environmental progress.”

The move comes shortly after Saudi-backed Lucid opened a facility in the country last month. It builds Air EVs using semi knocked-down (SKD) kits shipped from the United States, although it aims to become a fully fledged production facility later this decade.