Aston Martin Strikes Deal With California-Based Lucid to Help Make EVs
British ultra-luxury sports car manufacturer Aston Martin has partnered with California-based electric luxury car startup Lucid Group, whereby Lucid will supply electric motors and battery systems for Aston Martin’s upcoming electric vehicles.
Aston Martin aims to release its first fully electric model by 2025 and has Saudi Arabia’s Public Investment Fund as its largest shareholder, followed by billionaire chairman Lawrence Stroll, while Lucid has a 3.7% stake in Aston Martin.
Lucid was selected by Aston Martin through a competitive process, and the contracts between the two companies are valued at over $450 million, with Aston Martin planning to develop its own electric vehicle engineering using Lucid’s components.
In addition to its partnership with Lucid, Aston Martin has existing arrangements with Mercedes-Benz for various components in its vehicles, enhancing its technology-sharing capabilities.
As an independent brand in the automotive industry, Aston Martin stands apart from global auto giants like Volkswagen Group and BMW, which own luxury brands such as Bentley and Rolls-Royce, respectively. Collaborations with other automakers allow Aston Martin to access technology and benefits similar to its competitors.
Lucid’s Air electric luxury car, recognized as the MotorTrend Car of the Year in 2021, has faced challenges in sales due to macroeconomic conditions, leading to lower-than-expected earnings and production forecasts.
Despite investment in future models, Aston Martin has reported strong sales, particularly for its DBX SUV model. The company plans to invest over £2 billion ($2.5 billion) in the next five years to transition to electric and plug-in hybrid offerings.
News of the Aston Martin-Lucid partnership resulted in an approximately 11% increase in Aston Martin’s shares and a 7% rise in Lucid’s stock.
