Electric-car startup Lucid Motors plans to break ground during second quarter of the year to build its assembly plant in Casa Grande, Arizona. The facility is slated to start operations before the end of 2020, company officials revealed to local authorities, according to a report by AZCentral.com.

Back in 2016, the company said it would break ground in 2017 and cars would be in production by now. But then Lucid faced trouble to get the necessary financing to keep ahead with its plans.

Fortunately, that obstacle was overcome last year, when a Saudi fund committed to invest US$ 1 billion in the project.

Mike Boike, Lucid's senior manufacturing manager, said the US$700-million factory will employ 750 people in its first phase of operations to manufacture 20,000 vehicles a year. Once fully operational, the facility will feature a 130,000-car output capacity.

The company will eligible to receive up to US$5 million from the Arizona Competes Fund, US$40 million in tax credits and US$1.5 million for job training grants.

A key factor to establish operations in Casa Grande, was the proximity with supply chain that extends south of border into Sonora, Mexico, where some of the components will be built. In fact, when Governor Doug Ducey announced the company's plans in 2016, he was joined at the press conference by Sonora Gov. Claudia Pavlovich.

MexicoNow

Related

- Lucid Motors customers will get access to Volkswagen’s ultra-fast charging network

- Lucid Motors gets US$ 1 billion funding from Saudi Arabia; vows to launch its first vehicle by 2020

- Lucid Motors aims to start production of electric vehicles in Arizona by 2020

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