8:52 am, June 26, 2023
Aston Martin today announced plans for a strategic supply agreement with US electric vehicle maker Lucid Group for initial and certain future battery-electric vehicles made by the British brand.
In return, Lucid will receive some 28,352,273 new ordinary shares plus phased cash payments, together worth about $232m (£182m).
The deal needs the agreement of shareholders plus regulatory and other conditions to be satisfied, but assuming that all goes through, it’ll see the US manufacturer take an approximate 3.7 per cent stake in Aston Martin.
In a statement issued this morning via the London Stock Exchange, Aston Martin said the agreement will complement the bespoke development of a single BEV platform to be used across its future electrified product portfolio, as well as support its target to launch its first BEV in 2025.
It said: ‘The proposed alignment of Aston Martin’s iconic brand, ultra-luxury craftsmanship and high-performance in-house engineering excellence with Lucid’s advanced technologies and expertise in luxury electric vehicles would create an unrivalled combination with the capabilities to redefine the customer experience for future Aston Martin BEV products.’
Roberto Fedeli, chief technology officer of Aston Martin, said: ‘The proposed agreement with Lucid forms a significant pillar of our electrification strategy, providing Aston Martin with access to the industry’s leading powertrain and battery systems technology.
‘Combined with our internal development, this will allow us to create a single bespoke BEV platform suitable for all future Aston Martin products, all the way from hypercars to sports cars and SUVs.
‘In addition, we will continue to expand our in-house powertrain capabilities, allowing us to provide the thrilling performance and intense driving experience we know that our customers love and expect from Aston Martin.’
Lawrence Stroll, executive chairman of Aston Martin, commented: ‘The proposed supply agreement with Lucid is a game-changer for the future EV-led growth of Aston Martin.
‘Based on our strategy and requirements, we selected Lucid, gaining access to the industry’s highest performance and most innovative technologies for our future BEV products.
‘We will not only leverage the significant investments Lucid has made to develop its world-class technologies, but will also further enhance and differentiate the drive experience through the work Roberto and his teams are already developing, aligned with our ultra-luxury, high-performance strategy.
‘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.
‘With the recently announced long-term partnership with Geely, we will also gain the opportunity to access their range of technologies and components, as well as their deep expertise of the key strategic market of China.
‘Overall, today’s announcement is a further significant step towards delivering our ambition for Aston Martin.’
Peter Rawlinson, CEO of Lucid Group, said: ‘This partnership will represent a landmark collaboration between Aston Martin, a storied marque with a rich history, including winning at Le Mans and its current successes in F1, and the very best of Silicon Valley innovation and technology from Lucid.
‘In line with its strategy, Aston Martin selected Lucid, recognising the profound benefits of adopting its world-leading electric drivetrain technology, exemplified by the breakthrough 520-mile EPA-estimated range achieved by the Lucid Air Dream Edition.’
