Aston Martin in £182m partnership with start-up to make ‘ultra-luxury’ EVs as it reworks Mercedes deal
Aston Martin has announced a deal with US EV manufacturer Lucid Group to build ‘ultra-luxury’ electric vehicles, as it ditches elements of a previous 2020 agreement with Mercedez Benz.
The Gaydon-headquartered firm said that it would issue £182m worth of shares and cash payments, in exchange for electric batteries and powertrain components, with US-start up Lucid becoming a 3.7 per cent shareholder in the company.
The deal with Lucid marks a significant step in Aston Martins’ ‘Racing Green’ sustainability strategy, with it looking to shift away from the combustion engine and launch its first EV by 2025.
Lawrence Stroll, executive chairman of Aston Martin, said the agreement was a “game changer for the future of EV-led growth,” adding that the marque would “leverage the significant investments Lucid has made to develop its world-class technologies.”
Roberto Fedeli, chief technology officer of Aston Martin, added “the proposed agreement with Lucid forms a significant pillar of our electrification strategy, providing Aston Martin with access to the industry’s leading powertrain and battery systems technology.”
Peter Rawlinson, CEO of Lucid Group, said: “This partnership will represent a landmark collaboration between Aston Martin, a storied marque with a rich history.”
In a separate announcement, Aston Martin said that it would amend its 2020 deal with long term partner Mercedes-Benz, which had seen the marque access Mercedez’ EV tech. Mercedes will remain a 9 per cent shareholder.
Major stakeholders Yew Tree Consortium, Mercedez-Benz and Hangzhou-based Geely, who represent 48.1 per cent of share capital, have all backed the deal with Lucid.
The luxury carmakers’ shares have soared this year, following a number of changes to its shareholder structure. In May, Geely doubled its stake in the firm, prompting shares to jump 25 per cent.
Stroll added: “Along with Mercedes-Benz, we now have two world-class suppliers to support the internal development and investments we are making to deliver our electrification strategy.”
“With the recently announced long-term partnership with Geely, we will also gain the opportunity to access their range of technologies and components, as well as their deep expertise of the key strategic market of China.”
Russ Mould, investment director at AJ Bell, said: “Aston Martin shares continued their strong run, now up more than 130 per cent year-to-date.”
“Driving the latest rally is a deal with US group Lucid to make high performance electric vehicles. Lucid is to supply powertrain components in exchange for $232 million cash and 28.4 million shares, making it a 3.7 per cent shareholder in Aston Martin.”
He added: “It’s the latest in a string of strategic initiatives designed to make the iconic British car maker more relevant in the modern age, having recently struck a partnership with Geely to access technologies and components and have a bigger foot in the door in China.”