Originally posted by Crain’s Detroit Business
Photo credit: Bloomberg; Signage at a Lucid Studio showroom in Virginia.
Lucid Motors’ plan to invest $10 million and create up to 262 jobs in Southfield will be supported by a $6 million state grant.
The Michigan Strategic Fund board approved Tuesday the performance-based grant for the electric vehicle startup’s new engineering center in the Travelers Towers at 26533 Evergreen Road, a project reported by Crain’s last week.
The California-based EV manufacturer plans a 30,000-square-foot office space initially, with intentions to expand with an additional 50,000-75,000 square feet, according to a Michigan Economic Development Corp. briefing memo.
The company anticipates employing 262 workers by 2026, with an average wage of $51 per hour.
Josh Hundt, MEDC’s chief business development officer and EVP, said winning the project helps solidify the engineering prowess of Michigan, home to 75% of the country’s automotive R&D.
“This company is establishing their first non-manufacturing hub to be here in Michigan,” Hundt told Crain’s in an interview. “What it represents is that Michigan is continuing to lead the way in terms of the electrification of the automotive industry, and we’re continuing to lead the way in terms of research and development.”
Lucid’s expansion in metro Detroit will strengthen the region’s position as a mobility leader, said Maureen Donohue Krauss, president and CEO of the Detroit Regional Partnership, which served as lead on the project.
“The technology in the latest EV is mind-blowing, and Lucid is really pushing the innovation envelope with the Gravity,” Krauss said in an emailed statement. “This is exactly the kind of company we want to add to our automotive and mobility sector. As they innovate, they will grow, expand their footprint, create more jobs, and attract other innovators; strengthening our position as the Global Epicenter of Mobility.”
Company representatives are expected to bring a prototype of the Lucid Gravity – the automaker’s planned new crossover vehicle – to Lansing for a show-and-tell with public officials Tuesday.
Lucid currently has just one vehicle in the market, the luxury Air, which starts at about $70,000. Like other EV startups and established automakers, the company is grappling with less than anticipated demand for EVs, losing $2.8 billion last year and laying off 1,300 employees.
Lucid’s Southfield office is its third employment hub in the U.S. The company’s footprint is anchored by a 300,000-square-foot HQ in Newark, Calif., and it has a manufacturing plant in Arizona and one in Saudi Arabia.
The company had been scouting sites for over a year and considered several other states, including Ohio and Texas.
“The Company evaluated talent availability and cost, proximity to existing suppliers, and proximity to the existing manufacturing facility as part of the site selection process,” the MEDC briefing memo said. “The Company is attracted to Michigan because of the state’s workforce expertise and the number of suppliers in the region.”
Lucid already has about 25 Michigan-based employees working remotely as the company looks to open its office. The company is expected to complete its job creation and investment commitment by the end of 2026.
“This OEM research and development facility will impact the region with immediate job growth with a quickly growing automotive OEM that has already received prestigious awards for their product,” the memo said.
