What's Going On With Lucid Group Stock On Monday?

Lucid Group Inc. LCID announced Monday that it has formed a strategic alliance with Saudi Arabia's King Abdullah University of Science and Technology (KAUST) to propel forward the development of electric vehicle technologies, the EV maker revealed on Monday.

KAUST will provide access to its research facilities and high-powered computing resources as Lucid pushes ahead in developing high-efficiency EV components.

The partnership prioritizes breakthroughs in materials science, with the goal of improving both the durability and performance of electric vehicles.

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"KAUST's world-class research infrastructure and talent has the potential to further boost our technology leadership in many dimensions incl. our ADAS and AD roadmap—bringing cutting-edge innovation from the lab to the road," said Lucid's Interim CEO, Marc Winterhoff.

"This collaboration also strengthens our global R&D footprint bringing additional resources to bear in our efforts to continue as a leader in EV powertrain, battery systems, advanced materials, and software-defined vehicle platforms."

Key research areas include innovative metal and polymer composites, advanced laminate structures, thermal-reflective glass coatings, and alternative materials that have the potential to transform EV efficiency and design.

Together, Lucid and KAUST will tackle a range of design challenges, leveraging knowledge from chemical, thermal, electrical, and mechanical engineering.

"It dramatically enhances our ability to develop advanced fluids, materials and alloys, simulate real-world physics for crash safety and structural optimization, model fluid dynamics and thermal transfer, analyze electromagnetic flux, and accelerate AI training for digital twin technology, autonomous systems, and large language models," said SVP of Product and Chief Engineer at Lucid, Eric Bach.

The goal is to prototype next-gen systems and components that align with Saudi Arabia's broader vision for sustainable transport solutions. Research and development efforts will be conducted within KAUST's advanced labs located in King Abdullah Economic City.

Lucid is primarily backed by Saudi Arabia's Public Investment Fund (PIF), which has committed approximately $8 billion to the company since 2018.

In a separate agreement made in April 2022, the Kingdom pledged to acquire as many as 100,000 Lucid vehicles over the next decade. The automaker also operates a manufacturing facility in Jeddah, where it focuses on assembling its Lucid Air models.

Price Action: LCID shares traded lower by 5.34% at $2.40 at the last check on Monday.

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