Lucid Motors will supply powertrain technology to Aston Martin for the British marque’s future line-up of electric vehicles, the two companies announced Monday. The deal brings together two companies closely associated with motorsports as well as brand identities focused on performance luxury.
Under the deal, Lucid will supply Aston Martin with its electric motors and batteries used to power the California-based company’s sole model, the Lucid Air sedan. Aston Martin will then integrate that technology into its own bespoke EV models. Lucid CEO Peter Rawlinson hailed the deal as “a groundbreaking collaboration”.
Under the deal, Lucid will supply Aston Martin with its electric motors and batteries used to power the California-based company’s only model, the Lucid Air sedan.
Aston Martin, an iconic British luxury car brand with victories in Le Mans and F1 to its name, plans to launch its first plug-in model, the mid-engine hybrid Valhalla, in early 2024, followed by a pure battery electric vehicle (BEV ) the following year. All of the company’s models will be hybrid or BEV by 2026 and pure electric by 2030.
Lucid’s dual-motor Air stands out in the crowded luxury EV market with its long range and powerful specs. For example, the $154,000 Air GT includes a 112-kWh battery capable of producing 819 horsepower and propelling the vehicle to 60 mph in about two seconds. The base model Air has an EPA range of over 500 miles, although it has been shown to drop slightly in testing.
Under the agreement, Aston Martin will pay a “technology access fee” of $232 million to Lucid, consisting of $100 million in shares of the British company and “total cash payments” of $132 million. Aston Martin will also commit to an “effective minimum spend” with Lucid on powertrain components of $225 million. In total, the entire deal is valued at $450 million.
Both companies have had their respective financial difficulties. Aston has survived seven bankruptcies in its 110-year history, while Lucid has seen its share price plummet since going public in 2021. dwindling money supply.
Until recently, Aston Martin relied on Mercedes-Benz as a technology partner, but those conditions appear to be changing. In a separate announcement on Monday, the company said the German auto giant would not increase its stake in Aston, instead retaining its 9 percent stake.
Updated June 26 09:55 ET: Updated to reflect the deal is valued at $450 million.