(Bloomberg) — Hyundai Motor Co. has agreed to a take care of Saudi Arabia’s sovereign wealth fund to develop a greater than $500 million automobile meeting plant, becoming a member of electrical car maker Lucid Motors Inc. in producing automobiles within the oil-rich kingdom.
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The Korean automobile firm will probably develop the power at King Abdullah Financial Metropolis close to Jeddah with an purpose to supply 50,000 automobiles a yr, in keeping with Park Jiwoo, a senior supervisor at Hyundai’s exterior affairs crew. The plant shall be a three way partnership between the Public Funding Fund, which can maintain a 70% stake within the Saudi enterprise, and Hyundai, which can personal the remainder, she mentioned.
The meeting plant will begin operations in early 2026, producing a mixture of electrical automobiles and inside combustion engine automobiles, and is predicted to cowl round 300,000 sq. meters (3.2 million sq. toes.)
PIF, as the dominion’s wealth fund is thought, confirmed the three way partnership in an announcement and mentioned the brand new plant “will create 1000’s of jobs and permit for information and experience switch.”
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Growing a home auto business centered round Jeddah is one a part of Saudi Crown Prince Mohammed bin Salman’s plans to diversify the nation’s oil-dependent economic system. The initiative is being spearheaded by the PIF, which invested in US-based electrical car startup Lucid and obtained them to construct their first worldwide facility in Saudi Arabia.
It’s additionally created its personal EV model referred to as Ceer, and is investing internationally and domestically to safe the metals and minerals required to develop a provide chain for the business.
Learn Extra: Saudi Arabia’s Subsequent Huge Play: Mining for Metals within the Desert
(Updates with PIF’s affirmation in fourth paragraph.)
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