Lucid Group Expands Manufacturing with New Arizona Facilities

Categories: Arizona Business NewsArizona State News

Lucid Group's state-of-the-art manufacturing facility in Phoenix, Arizona.

News Summary

Lucid Group has inaugurated a new hub in Phoenix and a manufacturing plant in Coolidge, enhancing its operational capacity in Arizona. This expansion, following their acquisition of former Nikola facilities, adds over 884,000 square feet to Lucid’s footprint, supporting the production of the upcoming Lucid Gravity vehicle and creating around 500 jobs over the next few years. The new hub aims to streamline production processes alongside existing facilities, positioning Lucid for growth in the electric vehicle market.

Phoenix, Arizona – Lucid Group Inc., a California-based electric vehicle manufacturer, has officially inaugurated its new hub in Phoenix and a manufacturing plant in Coolidge. This expansion comes on the heels of Lucid’s acquisition of these facilities from Nikola Corporation during its bankruptcy auction, marking a strategic move to bolster its manufacturing capabilities in Arizona.

The grand opening ceremony for the Phoenix hub took place on Wednesday, signifying a major milestone for Lucid as it looks to solidify its presence in the rapidly growing electric vehicle market. With this acquisition, Lucid has added over 884,000 square feet to its manufacturing, product development, and warehousing footprint in Arizona, greatly enhancing its operational capacity.

Lucid’s senior vice president of operations highlighted the significance of these new facilities, stating they provide critical capacity for advanced manufacturing, product innovation, and testing. This new establishment works in conjunction with Lucid’s existing manufacturing site in Casa Grande, forming an integrated ecosystem designed to streamline production processes.

As a result of this expansion, Lucid’s total footprint in Arizona now approaches 4 million square feet. The new Phoenix and Coolidge facilities will directly support Lucid’s primary manufacturing activities in Casa Grande and are aimed at facilitating the production of the upcoming Lucid Gravity vehicle and a new midsize vehicle platform.

In terms of job creation, Lucid is projected to bring on approximately 500 new positions at its Phoenix hub over the next three to five years. The new site will be outfitted with state-of-the-art development equipment, including advanced battery testing chambers, environmental testing facilities, and precision machining equipment.

The acquisition of Nikola’s assets follows an agreement reached in April 2025, which was subsequently approved by a bankruptcy court. In a significant move forward, Lucid has also extended job offers to former Nikola employees, who will have opportunities across various roles including engineering, software development, vehicle assembly, and logistics.

Attending the ribbon-cutting ceremony, Arizona Governor Katie Hobbs emphasized the importance of Lucid’s expansion for creating local employment opportunities and its potential impact on the electric vehicle industry. Additionally, the President of the Arizona Commerce Authority commended Lucid’s commitment to enhancing electric vehicle innovation and manufacturing within the state.

Lucid’s interim CEO expressed enthusiasm regarding the acquisition, seeing it as a critical step in the company’s efforts to ramp up production. This announcement comes as Lucid is transitioning from a difficult financial period where over 900 employees were laid off from its Casa Grande facility. The focus now shifts towards growth and recovery within the evolving electric vehicle market.

The acquisition of Nikola’s facilities also reinforces Arizona’s position as a key player in clean technology and advanced manufacturing, an area that has been shaped significantly by Nikola’s rapid growth and subsequent decline. Nikola’s challenges began with legal issues involving its former founder and culminated in a bankruptcy filing in February 2025.

As Lucid Group continues to develop advanced electric vehicles, the new Phoenix hub represents a pivotal development in the company’s strategy to expand its manufacturing capabilities and fulfill increasing consumer demand for electric vehicles.