EV maker Lucid has inked a deal with Aston Martin to provide electric drive technology for the British luxury brand’s push into battery-electric vehicles.
Aston already formed an alliance with Mercedes-Benz to provide drivetrain technology for future EVs. That relationship will continue, though the British automaker said Monday that its German “big brother” will no longer move ahead with plans to increase its stake in Aston.
“We now have two world-class suppliers to support the internal development and investments we are making to deliver our electrification strategy,” Aston Martin Executive Chairman Lawrence Stroll said in a statement.
Aston Martin valued the new alliance with Lucid at $232 million, with payment to be made in a mix of cash and 28.4 million new ordinary shares. Lucid, however, issued a statement valuing the new contracts at somewhere “in excess” of $450 million. A spokesperson for Aston confirmed its lower figure. TheDetroitBureau.com has reached out to Lucid asking it to clarify the higher number.
Joining forces
Lucid is a California-based EV startup currently producing several versions of its all-electric Air sedan. They range in price from $87,400 to $179,000, the top-line Air Dream Edition pushing into territory that Aston has long competed in.
Like rivals such as Ferrari, Lamborghini and other exotics, Aston is facing the need to shift from internal combustion engines to all-electric drivetrain technology.
It has shifted its strategy repeatedly, however. It initially launched a low-volume version of its four-door Rapide model, dubbed the Rapide-E. And it laid out plans to revive the long-moribund Lagonda brand as the heart of its electrification program. Those moves were put on hold when Stroll, the Canadian billionaire, came onboard as Aston’s largest investors — in the process ousting former CEO Andy Palmer.
Since then, Aston has also brought in the Saudi sovereign investment fund as its second-largest shareholder and expanded its ties to Mercedes. The German automaker provides a variety of different parts and components to Aston, from infotainment to powertrain systems.
In its statement announcing the Lucid deal, Aston stated, “Mercedes-Benz AG (will) continue to provide Aston Martin with access to a range of world-class technologies, including powertrain and electric/electronic architectures for current and future generation Aston Martin vehicles, including internal combustion engine, hybrid and electric vehicles.”
That indicates that Mercedes will remain the primary partner in the development of Aston’s first volume EV which is due to reach market in 2025.
What role Mercedes and Lucid will play in subsequent EVs was not revealed. But Aston stressed that there will be all-electric versions of all product lines starting in 2026, while the automaker’s “core” models will go completely electric by 2030.
Aston’s changing complexion
The Saudis have become significant investors in the automotive sector, and are expanding their holdings in green ventures. They have had long-running ties to Mercedes and are now the largest investor in Lucid. Earlier this month, Saudi Arabia’s Public Investment Fund was responsible for roughly two-thirds of a $3 billion lifeline for the U.S. EV start-up.
Aston has been hedging its bets as it moves forward. In May, Chinese automaker Geely purchased 42 million shares of Yew Tree, Stroll’s holding company and the single-largest investor in Aston Martin.
“They offer us a deep understanding of the key strategic growth market that China represents, as well as the opportunity to access their range of technologies and components,” Stroll said of Geely at the time the deal was announced.
Aston has been struggling to fund a major product development program that will rely heavily on electric propulsion. It plans to invest 2 billion pounds, or $2.54 billion, in EVs and other technologies. It has said that 2023 will be its “peak year” for capital investments.
Lucid stock was up about 3% in late afternoon trading Monday following the announcement of the Aston deal. The British automaker’s shares were off by about 1.7%, however.