Lucid Motors magnet supply chain shift away from China

On January 23, Lucid Motors interim CEO Marc Winterhoff said the company plans to eliminate China from its magnet supply chain this year, accelerating efforts to diversify sourcing and reduce geopolitical dependency. The Lucid Motors magnet supply chain transition is a key part of the automaker’s long-term manufacturing and localization strategy as it expands its electric vehicle footprint in Saudi Arabia.

Strategic shift in magnet sourcing

Winterhoff said Lucid is progressing rapidly toward removing China from its magnet supply chain by 2026 while actively welcoming alternative sources. He emphasized the company’s openness to new regional suppliers that can support stable and scalable production as EV volumes increase. “We are well underway to move completely away from China in 2026, and we welcome additional sources” of magnet supply in Saudi Arabia, Winterhoff said. He added that Lucid is evaluating potential output from a rare earths processing plant planned in the Kingdom by MP Materials Corp. and Saudi Arabia’s Maaden.

Saudi Arabia localization plans

Lucid is increasingly focusing on sourcing components within Saudi Arabia as it prepares for full-scale manufacturing at its AMP-2 plant in King Abdullah Economic City. According to Winterhoff, local sourcing is expected to strengthen supply chain resilience while supporting the Kingdom’s industrial development goals.

Transition from assembly to full production

Currently, Lucid’s facility in the Kingdom of Saudi Arabia assembles vehicle kits shipped from its Casa Grande, Arizona plant. The company plans to begin full production at the site in late 2026, followed by a gradual production ramp-up through 2027 and 2028.

Building an automotive ecosystem in KSA

In December 2025, Chief Financial Officer Taoufiq Boussaid said Saudi authorities are developing a dedicated automotive ecosystem designed to attract Tier 1 and Tier 2 suppliers closer to Lucid’s operations. He noted that the company’s next-generation platform will feature motors “manufactured and mounted in KSA,” reinforcing the importance of localized supply chains. By aligning the Lucid Motors magnet supply chain with Saudi Arabia’s emerging rare earth and automotive ecosystem, the company is positioning itself for greater supply security, regional integration, and long-term competitiveness in the global EV market.