Aston Martin Cuts Deal With Lucid For EV Tech

Aston Martin has reached a deal that will see it giving a 3.7 stake in the company to US electric vehicle firm Lucid in return for access to its technology as it seeks to begin making “ultra-luxury high-performance electric vehicles” from 2025.

The deal is to see the British firm making cash payments and issuing 28.4 million new ordinary shares to Lucid, together worth about £182m.

The London-listed carmaker said it would use powertrain components from Lucid in initial battery electric vehicle (BEV) models and would also use them in some future models.

The deal involves a minimum spend of £177m with Lucid ahead of the British company’s planned initial BEV in 2025.

Custom EV platform

Aston Martin chief technology officer Roberto Fedeli said the deal, combined with the firm’s own internal development, would enable it to create a single bespoke BEV platform “suitable for all future Aston Martin products, all the way from hypercars to sports cars and SUVs”.

Separately the company said it had amended an existing agreement with Mercedes-Benz under which the German firm would not increase its stake in Aston Martin as planned but would continue to hold about 9 percent in the firm while providing access to engine and EV technology.

“Along with Mercedes-Benz, we now have two world-class suppliers to support the internal development and investments we are making to deliver our electrification strategy,” said Aston Martin executive chair Lawrence Stroll.

Carmakers worldwide are investing more than $1tn (£786bn) in building out their electric vehicle manufacturing capabilities, with smaller companies such as Aston Martin relying on partnerships with outside firms to help them make the transition.

Electric shift

Aston Martin said that by 2026 all its new models would include an electric version and that its core range would be fully electric by 2030.

Last month Chinese car giant Geely doubled its stake in Aston Martin to 17 percent in a deal that Stroll said would give the British firm access to its technologies and components.

US EV maker Lucid, which makes luxury Air sedans, listed on the Nasdaq in February of last year via a merger with a special purpose acquisition company (SPAC).

In May, hit by slumping demand and an EV price war, Lucid reported lower-than-expected first-quarter revenues and cut its 2023 production forecast.