EV Startup to Build Plant in Arizona

Lucid Motors Inc. (formerly Atieva Inc.) has selected Casa Grande, Ariz., as the site to produce the electric vehicle it announced last month.

The Silicon Valley startup, which aims to launch production of the unnamed midsize sedan by late 2018, will begin construction of the 500-acre Arizona site next year. The company expects to invest a total of $700 million there by 2022.

Lucid says it evaluated 60 other sites in 13 states before choosing Casa Grande. It cites the location’s proximity to rail lines, interstates, ports, training facilities, utilities and its own headquarters in Menlo Park, Calif., as reasons for the decision.

The facility is expected to employ as many as 2,000 people by 2022. Many of the EV’s parts will be sourced from suppliers in Mexico’s nearby Sonora state.

The company targets initial sales of 20,000 cars per year and hopes to eventually increase annual volume to 130,000 units with the addition of an electric crossover vehicle and other models. Lucid plans to unveil a running prototype of its first vehicle later this year.

Powered by an 87-kWh battery, the new EV is expected to have a driving range of about 400 miles. Lucid claims the car’s electric motors will generate as much as 1,000 hp and propel the vehicle from zero to 60 mph in less than three seconds.