Aston Martin Lagonda Global Holdings Plc has made a significant move towards its electric vehicle (EV) ambitions by entering into a new supply agreement with Lucid Group. As part of the deal, Lucid will receive a 3.7% stake in Aston Martin and a cash payment of £104 million. This partnership enables Aston Martin to utilize Lucid’s powertrain and battery technology for its future in-house EV platform, marking a game-changing development for the British carmaker’s EV growth.
1. Partnership with Lucid Group: Aston Martin has announced a new supply agreement with Lucid Group, in which Lucid will receive a 3.7% stake in Aston Martin and a cash payment of £104 million. This partnership allows Aston Martin to access Lucid’s powertrain and battery technology for its future electric vehicles.
2. Game changer for EV growth: Lawrence Stroll, Executive Chairman of Aston Martin, stated that the supply agreement with Lucid is a game changer for Aston Martin’s future electric vehicle-led growth. By selecting Lucid, Aston Martin gains access to innovative technologies and high-performance components for their upcoming battery electric vehicle platform.
3. Extended partnership with Mercedes-Benz: In addition to the deal with Lucid Group, Aston Martin will also extend its partnership with Mercedes-Benz for electric vehicle parts. This enables Aston Martin to source EV components from two different suppliers, further strengthening their electric vehicle ambitions.
Aston Martin Lagonda Global Holdings Plc announced on Monday a new supply agreement with Lucid Group, as the British carmaker accelerates its electric vehicle ambitions. Under the agreement, Lucid will receive a 3.7% stake in Aston Martin and a cash payment of approximately £104 million. This deal allows Aston Martin to utilize Lucid’s powertrain and battery technology for its upcoming in-house Battery Electric Vehicle (BEV) platform. Lawrence Stroll, Executive Chairman of Aston Martin, stated that the agreement with Lucid is a game changer for the future EV-led growth of the company, as it grants access to the industry’s most innovative technologies.
In addition to the partnership with Lucid, Aston Martin will extend its existing collaboration with Mercedes-Benz for EV parts. This arrangement allows Aston Martin to source EV parts from two suppliers, further strengthening its electric vehicle capabilities. The announcement of this partnership caused Aston Martin shares in the UK to surge by as much as 15%, while Lucid shares trading in premarket in New York experienced a nearly 9% increase.
The involvement of Saudi Arabia’s sovereign wealth fund in connecting Aston Martin with Lucid is unknown. However, the fund does hold stakes in both auto manufacturers, indicating a potential influence in the agreement. The partnership between Aston Martin and Lucid is seen as a significant collaboration, as it combines Aston Martin’s rich history and successes in motorsport with Lucid’s innovative technology and expertise from Silicon Valley. Peter Rawlinson, CEO and CTO of Lucid, highlighted the collaboration’s significance in a press release, emphasizing the blending of Aston Martin’s heritage with Lucid’s cutting-edge innovations.
This deal marks a crucial step for Aston Martin as it reinforces its commitment to electric vehicles and positions itself for future growth in the EV market. By partnering with Lucid and Mercedes-Benz, the British carmaker secures access to advanced technologies required for the development of high-performance electric vehicles. As the world shifts towards electric mobility, Aston Martin aims to remain at the forefront by leveraging these strategic partnerships and bringing its all-new BEV platform to market.