A rendering of Lucid’s Arizona factory image: Lucid Motors

Lucid Motors, an electric car startup that secured a $1 billion investment from Saudi Arabia’s Public Investment Fund last year, has officially flagged off construction of a $700 million factory in the state of Arizona. The factory, chosen after a search spanning 13 U.S. states and more than 60 sites, is where Lucid intends to produce its first car, the Lucid Air. The first phase of the construction will cost Lucid more than $300 million, an investment that’s expected to get it ready to begin producing the Lucid Air. The aforementioned $700 million figure is what Lucid expects to put towards full completion of the factory.

Lucid held an official event to celebrate the start of construction of its electric vehicle facility. Attendees at the event included executives of the company and Arizona Governor Doug Ducey, alongside officials of the state. Lucid says the factory is expected to create 4,800 direct and indirect jobs by 2029, and bring along an estimated $32 billion revenue impact for the city and county where it’s based over a 20-year period.

According to Lucid, the state of Arizona was selected for its factory based on “numerous positive factors”, such as talent, infrastructure, business climate, geographic location, and the automotive supply chain in the Arizona-Sonora region. The company isn’t the first electric vehicle manufacturer to have picked Arizona for a construction facility, with Nikola Motor having done that earlier this year when it purchased an Arizona site that it intends to build a manufacturing facility on. For context, Nikola is a formerly Utah but now Arizona-based manufacturer of hydrogen-electric vehicles that recently closed $250 million in funding at a $3 billion valuation.

“Attracting a high-tech automotive manufacturer like Lucid Motors to Arizona is a testament to the talent, business environment, and geographic location our state has to offer innovative companies to help them succeed,” Arizona Governor Doug Ducey said in a statement. “I congratulate Lucid Motors, Casa Grande, and Pinal County on achieving this milestone and look forward to seeing the first vehicles roll off the production line.”

A rendering of Lucid’s Arizona factory image: Lucid Motors

The start of construction of Lucid’s new factory comes not too long after it hired Peter Hochholdinger, who previously held the role of Vice President of Production at Tesla, to head its manufacturing operations. His hire, coupled with the start of the first phase of construction of this new factory, is a testament to Lucid looking to begi production soon. Such moves collerates with its plan for the Lucid Air, which it has scheduled for production by late next year.