Under the deal, Lucid will supply Aston Martin with the electric motor and battery system currently in place in Lucid’s Air sedan, its only model available for sale. The technologies will then go into Aston Martin’s first plug-in model, the hybrid Valhalla, early next year and be followed by a battery-electric vehicle in 2025. All of the company’s models will be hybrid or BEV by 2026 and purely electric by 2030 as part of its Racing. Green sustainability goals.
"This partnership will represent a landmark collaboration between Aston Martin, a storied marque with a rich history … and the very best of Silicon Valley innovation and technology from Lucid," said Peter Rawlinson, CEO and CTO of Lucid.
In exchange for the technology, Lucid will receive a 3.7% stake in Aston Martin and $232 million in cash payments, which is a help to the company. The two have a common stakeholder as well: the Public Investment Fund of Saudi Arabia, which owns 60% of Lucid, also has an 18% stake in Aston Martin. Lucid also recently raised $3 billion through a stock sale as it prepares to enter the Chinese market.
Lucid isn’t Aston Martin’s only high-profile partnership. It entered a deal with Mercedes-Benz in October 2020 where Mercedes-Benz provided the company with its powertrain and technology for future vehicles, both ICE and electric. But, the company also announced that agreement had been amended. Aston Martin was originally to issue consideration shares in two tranches, the second of which is still unissued. Due to the amendment, the two will continue working together, but the second tranche will instead be replaced with cash.
Mercedes-Benz will retain its almost 10% stake in the company.
Lawrence Stroll, executive chairman of Aston Martin, said he appreciated the company’s support and was excited to continue their long-term partnership.
“This amendment provides clarity and will see both companies continue our long-standing relationship, providing us with access to Mercedes' world-class technologies as we bring our new range of breathtaking products to market over the coming years,” he said.
The June 26 announcement caused shares of Lucid (Ticker: LCID) to rise to $6.23, a significant increase after hitting a new yearly low of $5.47 and closing at $5.55 the day before. Over the past six months, they have remained relatively flat. The company’s current market capitalization is $11 billion.
