A long-delayed car factory in Casa Grande is expected to break ground within months.

Ryan Randazzo | The Republic | azcentral.com

Corrections & Clarifications: In a previous version of this story, the time frame on when Lucid Motors plans to break ground on its factory in Casa Grande was incorrect. Also, the party that commissioned the economic analysis of the project was incorrect. ​

Electric-car startup Lucid Motors plans to break ground within months on a massive Casa Grande factory expected to produce its first car before the end of 2020, a company official said Friday.

The ambitious plans for a factory that will employ about 745 people in its first phase would be a major boon for the Pinal County economy, should the plans come to fruition.

When Gov. Doug Ducey announced Lucid's plans in November 2016, the company said its nearly $700 million factory would break ground in 2017 and the cars would be in production by now. But that didn't happen.

The Newark, California, company hoping to join the luxury car market gave an update to a Greater Casa Grande Chamber of Commerce luncheon in Eloy on Friday.

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"We are on a mission to get this thing up in Casa Grande as fast as we can," said Mike Boike, Lucid's senior manufacturing manager.

The vehicles will start at more than $100,000 but later a model in the $65,000 range is planned, he said.

He said the project will break ground in the April-June time period and be operational before 2021.

Lucid announced last fall it was getting a $1 billion investment from the Public Investment Fund of Saudi Arabia. That was the same institution that Tesla Motors CEO Elon Musk said he was negotiating with in a deal that never materialized to take his company private.

That investment seems to have re-ignited the delayed Casa Grande plans.

Boike tried to assure the approximately 200 people gathered Friday that it was indeed moving forward.

"I can tell you, startup does not mean amateurs," he said of the company, adding that Lucid has employees from Apple, Google, Boeing, Land Rover and a variety of other successful companies.

Lucid could receive up to $5 million from the Arizona Competes Fund, a cash account the governor uses to help entice companies to the state.

The company could also be eligible for up to $40 million in tax credits if its facilities meet certain criteria and $1.5 million for job training grants tied to its hiring.

When Ducey announced the company's plans in 2016, he was joined by Sonora Gov. Claudia Pavlovich and Lucid executives. Two early prototypes of the sedans Lucid plans to assemble in Arizona provided a backdrop for the event.

The company would use suppliers from Mexico, officials said, and Boike confirmed Friday that the company chose Casa Grande for the factory location both because of the business-friendly environment and the access to suppliers in the U.S. and Mexico via Interstates 8 and 10.

"This is well centered to distribute across the country," Boike said.

Big impact on region expected

Boike said the factory will contribute to $32.3 billion in economic benefit to the region over 20 years once it is built, according to an analysis the city and county commissioned.

The city and county also will reap about $33.5 million in taxes from the factory, he said.

When pressed on wages at the factory, Boike said he was unsure but thought the jobs would pay about $17 to $18 an hour. The economic analysis he referenced cites an average wage of $19 an hour for the first phase, though that includes construction jobs as well.

The factory initially will produce about 20,000 vehicles a year, Boike said. But plans for subsequent additions will bring the capacity to 130,000 a year, he said.

The economic analysis indicates the total investment from the factory and its equipment will be about $675 million when all phases are built by 2025.

The first phase, expected to be running by 2021, will be a $168 million investment in equipment and an $82 million property investment, according to the analysis presented to the Pinal County Board of Supervisors.

City will need more housing

Casa Grande Mayor Craig McFarland said the city is preparing for the influx of workers expected with the factory.

"We are working feverishly," McFarland said after Lucid's presentation.

After the city issued just 100 new housing permits in 2017, it issued 355 last year, and already more than 100 in the first month of 2019, he said.

"We've got 11 builders working in the city now," McFarland said. "We had two a year ago. We're just excited for Lucid to come to town and break ground."

Pinal County purchased the land that Lucid will build on, and the company will rent and eventually buy the land from the county.

The factory will be within the Casa Grande city limits, and Arizona Public Service Co. will be the electricity provider.

APS community affairs manager Richard Rosales said the utility is prepared for the factory and recently built a new substation in the area that will serve it and other nearby businesses in the growing area.

"APS is ready for the growth that is coming," Rosales said.

David Wallace/The Republic

Lucid boasts about car

Boike also took the opportunity to boast about Lucid's plans for luxury cars that he said will compete more with high-dollar Mercedes vehicles than with other electric cars like Tesla.

Lucid plans to sell its vehicles much like Tesla — online, with customers picking them up or having them delivered to their home, Boike said.

Boike said the batteries are expected to last 10 years and can travel 400 miles on a charge. In addition to chargers at owners' homes, they will rely on charging stations built by Electrify America to recharge on the road.

He said it takes about half an hour to recharge the battery 80 percent, which would give the car a 320 mile range before the next charge.

The compact electric motor frees up space in the design, allowing Lucid to design a car with plenty of room for passengers, he said.

The design allows the two rear seats in the Lucid vehicle to fully recline, and without an engine up front, Lucid has designed a storage space under the hood.

"We call it a frunk — front trunk," he said.

The prototype cars Lucid has built have more than 1,000 horsepower, a top speed of 235 miles per hour so far, and pick up to go zero to 60 in 2.5 seconds, Boike said.

"It's a lot of fun," he said.