US electric carmaker Lucid Group secures $1.5bn from PIF 

Lucid Motors is majority-owned by the Public Investment Fund. Shutterstock
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Updated 06 August 2024
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US electric carmaker Lucid Group secures $1.5bn from PIF 

  • Deal includes $750 million in convertible preferred stock via private placement and a $750 million unsecured delayed draw term loan facility
  • Lucid reported revenue of $200.6 million on deliveries of 2,394 vehicles for the second quarter

RIYADH: US automaker Lucid Group has secured $1.5 billion in new funding from its majority shareholder, Ayar Third Investment Co., an affiliate of Saudi Arabia’s Public Investment Fund. 

The deal includes $750 million in convertible preferred stock via private placement and a $750 million unsecured delayed draw term loan facility, subject to certain terms and conditions, according to a statement. 

This is in line with PIF’s aim to be a global investment powerhouse and the world’s most impactful investor, enabling the creation of new sectors and opportunities to shape the future global economy while driving Saudi Arabia’s economic transformation. 

It also aligns well with Lucid’s mission to expedite the global shift toward sustainable transportation and energy by crafting the most advanced electric vehicles available. 

“The additional $1.5 billion commitment by an affiliate of the PIF announced today is expected to provide sufficient liquidity into at least the fourth quarter of 2025,” the Interim Chief Financial Officer and Principal Accounting Officer at Lucid Gagan Dhingra said. 

The statement further revealed that the PIF-backed firm plans to utilize the funds raised from the private placement and potential proceeds from the term loan for general corporate uses, which could encompass various activities such as investments and meeting working capital needs.

The EV maker also announced its financial results for the second quarter, which ended June 30. Lucid reported revenue of $200.6 million on deliveries of 2,394 vehicles during this period, according to a statement.

The carmaker expects to manufacture approximately 9,000 vehicles in 2024. 

Lucid ended the second quarter with approximately $4.28 billion of total liquidity.

“Our Q2 financial performance reflects the positive momentum of increased sales of Lucid Air and the results of our cost reduction efforts, which contribute to the journey toward improving gross margin,” Dhingra said. 

Peter Rawlinson, CEO and Chief Technology Officer of Lucid said: “I’m very encouraged by our sales and market share momentum we’re experiencing, the benefits we’re realizing from our cost optimization programs, and the excitement that’s been building into the Lucid Gravity launch, setting a strong foundation for the rest of the year.” 

Rawlinson added: “The tremendous financial value potential our technology enables is now becoming better recognized, and our achievement of a landmark efficiency of 5.0 miles per kilowatt hour, ahead of where we anticipated, is a further proof point of our leadership as a technology company.” 

In September 2023, Lucid opened its first plant outside the US in Saudi Arabia, with an initial capacity of 5,000 EVs annually. 


Saudi Arabia approves over 1k chemical permits, awards 172 mining licenses 

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Saudi Arabia approves over 1k chemical permits, awards 172 mining licenses 

RIYADH: Saudi Arabia processed more than 1,000 chemical permit requests in November and awarded exploration rights for 172 mining sites in what the government described as its largest licensing round on record. 

The Ministry of Industry and Mineral Resources said it handled 1,095 chemical clearance requests during the month, including 1,041 approvals for non-restricted chemicals and 54 for restricted substances, covering 2,081 product classifications, the Saudi Press Agency reported. 

It forms part of ongoing efforts to accelerate the discovery and development of mineral resources valued at over SR9.4 trillion ($2.51 trillion), aligning with Vision 2030’s objective to position mining as the third pillar of the national industrial sector.   

Ministry spokesperson Jarrah Al-Jarrah explained that the chemical clearance service enables industrial investors to obtain import or export permits for chemicals used in manufacturing through the “Sanaei” digital platform.  

“He clarified that the service aims to ensure that chemical clearances for industrial facilities are granted through streamlined procedures and in a timely manner, thus serving investors and facilitating the entry of their materials through ports of entry,” the SPA report stated. 

Al-Jarrah explained that the service plays a critical role in enhancing industrial output by developing and automating permit procedures for production-related chemicals as part of the ministry’s digital services.  

In a separate development, the ministry announced that 24 domestic and international companies and consortiums won exploration licenses across 172 mining sites in Saudi Arabia, with 76 of those sites awarded through a multi-round public auction.   

These sites span three mineral belts in the Riyadh, Madinah, and Qassim regions, with committed exploration spending exceeding SR671 million during the first two years of project implementation.  

The ministry described this licensing round as the largest mining tender in the Kingdom’s history.   

The competition covered more than 24,000 sq. km across regions known for strategic minerals including gold, copper, silver, zinc, and nickel.   

Additionally, the ministry noted that 26 qualified companies participated through the electronic bidding platform, progressing through a transparent process that began with prequalification and culminated in competitive multi-round auctions.  

The ministry confirmed that these investments aim to develop untapped exploration zones and enhance the utilization of Saudi Arabia’s mineral wealth, strengthening global supply chains.   

It also announced plans to launch further exploration license tenders covering 13,000 sq. km across Madinah, Makkah, Riyadh, Qassim, and Hail, with additional opportunities to be revealed at the 5th Future Minerals Forum in Riyadh from Jan. 13 to 15.  

These efforts, the ministry stated, reflect a broader mining strategy focused on maximizing resource potential, attracting foreign investment, creating employment opportunities, and integrating value chains to establish Saudi Arabia as a global mining hub.