June 26, 2023: Luxury electric vehicle (EV) manufacturer Lucid Group and iconic British automaker Aston Martin have announced a collaboration to bring EV models to the market. Aston Martin plans to launch an electric vehicle by 2025 and will rely on Lucid to provide powertrain components for these future models.
This partnership is significant for Lucid as it marks their first venture into becoming a supplier, allowing them to diversify their revenue streams. Lucid has faced challenges meeting delivery expectations and generating sufficient demand for their luxury EVs, resulting in missed revenue targets. The company reduced its workforce by 18% earlier this year to address these issues.
Lucid has already introduced an electric drive unit specifically designed for motorsports, showcasing their commitment to innovation. As part of the agreement, Aston Martin will make cash payments to Lucid in phases and grant the startup a 3.7% stake, equivalent to approximately 28,352,273 ordinary shares, totaling around $232 million in value.
In addition to financial arrangements, Lucid will provide technical support to Aston Martin, assisting with integrating Lucid’s electric powertrain technologies. This includes their twin motor drive unit, battery technology, and the Wunderbox onboard charging unit. By leveraging Lucid’s expertise, Aston Martin aims to develop a unique battery electric vehicle (BEV) platform suitable for their entire product lineup, from hypercars to sports cars and SUVs.
Aston Martin already benefits from utilizing engines and technology from Mercedes-Benz. Furthermore, Chinese company Geely recently increased its stake in Aston Martin by 17%. With partnerships with Mercedes-Benz and now Lucid, Aston Martin gains access to world-class suppliers that support their internal development and investment in their electrification strategy. Collaborating with Geely also provides opportunities to leverage their technologies, components, and extensive knowledge of the Chinese market.
Aston Martin is set to unveil a strategic update outlining new production targets on Tuesday, indicating their commitment to advancing their EV initiatives and addressing the changing automotive landscape.