Aston Martin has partnered with Lucid Motors, a US electric vehicle (EV) maker, to give its electrification strategy a boost.
Lucid will receive a 3.7% stake in the British luxury car manufacturer in a cash and shares deal, according to Reuters. In exchange, the company will supply its EV powertrain technology as Aston Martin seeks to transition from producing internal combustion engine vehicles to battery electric vehicles (BEVs).
“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,” said Roberto Fedeli, chief technology officer at Aston Martin, in a statement today (June 26).
Aston Martin has been behind the curve in developing an electric line of vehicles—Jaguar has been selling EVs for years (with mixed results), while Rolls Royce has begun taking orders on its first-ever EV, the Spectre. On top of electrification being expensive, especially for a relatively small firm, Aston Martin has also suffered from supply chain issues, plummeting sales, and tanking stock value during the pandemic years.
The agreement with Lucid could help the brand play catch-up. Its first electric models are set to debut in 2025.
Aston Martin and Lucid’s BEV deal, by the digits
28.4 million: Number of ordinary shares being issued to Lucid under the new agreement, according to Reuters
$232 million: Estimated value of Aston Martin and Lucid’s deal, including both shares and cash, according to Reuters
£2 billion ($2.54 million): Amount Aston Martin has committed over the next five years to facilitate the electrification of its cars
Saudi Arabia’s Public Investment Fund hold stakes in both Aston Martin and Lucid
Saudi Arabia’s wealth fund, controlled by crown prince Mohammed bin Salman (MBS), holds sizable stakes in both Lucid and Aston Martin.
In July 2022, Saudi Arabia’s Public Investment Fund (PIF) became the second-largest shareholder of Aston Martin, spending £78 million ($99.1 million) to claim a 16.7% stake in the company. It swooped in at a time when the brand was struggling with both cash flow and debt. PIF now has two seats on the company’s board.
PIF first bought into Lucid, an emerging rival to Tesla, in 2018 with a $1 billion investment. It currently controls 60.5% of the company, committing another $1.8 billion as part of a $3 billion funding round Lucid announced in May.
The investments are part of Saudi Arabia’s plan to diversify from fossil fuels and develop its own EV industry. In March 2022, Lucid announced it was building its first international EV plant in Saudi Arabia, and in November, MBS announced the launch of the country’s first domestic EV brand, Ceer.
One more thing: King Charles III has decarbonized his Aston Martin
At least one Aston Martin vehicle is running on alternative fuels. King Charles III said in October 2021 that he converted his Aston Martin to run on a bioethanol mix made of surplus from cheese and wine production. Experts, however, warned not to try that at home.
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