Luxury high-performance battery electric models will be manufactured by the British carmaker using components from Lucid
Aston Martin and US firm Lucid have reached an agreement to produce “ultra-luxury high-performance electric vehicles” starting in 2025. Aston Martin, facing significant losses of nearly £500m last year, has sealed a deal valued at £182m, wherein Lucid will acquire a 3.7% stake in the London-listed luxury carmaker through cash and shares. By utilizing powertrain components from Lucid, Aston Martin intends to incorporate them into initial and selected future battery electric vehicle (BEV) models. The partnership, entailing a minimum expenditure of £177m with Lucid, will accelerate Aston Martin’s plans to unveil its first BEV in 2025.
Aston Martin’s Chief Technology Officer, Roberto Fedeli, stated that in conjunction with their internal advancements, this collaboration with Lucid will enable them to develop a specialized battery electric vehicle (BEV) platform that can be utilized across their entire range of products, including hypercars, sports cars, and SUVs. It’s worth noting that Mercedes-Benz also holds a 9.4% stake in Aston Martin as part of a comprehensive strategic agreement, encompassing technology sharing and representation on Aston Martin’s board.
For years, industry analysts have raised concerns about how smaller car manufacturers like Aston Martin would manage the costly transition to electric vehicles and the growing need for digital technology. They questioned their ability to navigate these challenges without the backing of a larger automotive group, as seen with Bentley under VW ownership or Rolls-Royce under BMW ownership.
Lawrence Stroll, the executive chair of Aston Martin, expressed that the potential partnership with Lucid holds transformative potential for Aston Martin’s future growth driven by electric vehicles. Stroll, a fashion billionaire who assumed control of the struggling company in 2020, highlighted the significance of having two renowned suppliers, Lucid and Mercedes-Benz, supporting their internal advancements and investments in order to execute their electrification strategy successfully.
Furthermore, it is noteworthy that Geely, a prominent independent Chinese automaker, recently increased its stake in Aston Martin to 17%.
During February, Nissan disclosed its plans to acquire a stake of potentially 15% in Renault’s prominent electric vehicle division. This move was part of a fresh, long-term agreement aimed at rebuilding the strained alliance between the two major automotive manufacturers, which has endured for 24 years.
On Monday morning, Aston Martin’s shares experienced a notable increase of approximately 9%.
