Aston Martin Lucid partnership to manufacture EV’s. Aston Martin has formed a collaboration with Lucid Motors, an American electric vehicle (EV) manufacturer, to enhance its electrification plans. As part of the agreement reported by Reuters, Lucid will acquire a 3.7% stake in the renowned British luxury carmaker through a combination of cash and shares. In return, Aston Martin will gain access to Lucid’s advanced EV powertrain technology, supporting its transition from producing traditional internal combustion engine vehicles to battery electric vehicles (BEVs).
Roberto Fedeli, the chief technology officer at Aston Martin, stated that their collaboration with Lucid Motors, in addition to their internal development efforts, will enable them to create a customized battery electric vehicle (BEV) platform that can be utilized across their entire future product range, including hypercars, sports cars, and SUVs. This statement was made on June 26.
Aston Martin has been lagging behind in the development of electric vehicles, with Jaguar having already sold EVs for several years (with varying degrees of success), and Rolls Royce accepting orders for its first-ever EV, the Spectre. Alongside the high costs associated with electrification, which can be particularly challenging for a relatively small company, Aston Martin has faced supply chain issues, declining sales, and a decrease in stock value during the pandemic period.
The partnership with Lucid Motors presents an opportunity for Aston Martin to catch up. Their initial electric models are scheduled to be unveiled in 2025.
Aston Martin and Lucid’s agreement on battery electric vehicles (BEVs), quantified:
- According to Reuters, 28.4 million ordinary shares will be issued to Lucid as part of the new deal.
- The estimated value of the overall agreement, encompassing shares and cash, is reported to be $232 million.
- Aston Martin has committed £2 billion ($2.54 million) over the next five years to support the electrification of its vehicle lineup.
Saudi Arabia’s sovereign wealth fund, overseen by crown prince Mohammed bin Salman (MBS), holds significant stakes in Lucid and Aston Martin.
In July 2022, the Public Investment Fund (PIF) of Saudi Arabia became the second-largest shareholder of Aston Martin, investing £78 million ($99.1 million) to acquire a 16.7% stake in the struggling company. This investment came at a crucial time when Aston Martin was facing financial difficulties, including cash flow issues and debt. PIF now holds two seats on Aston Martin’s board of directors.
PIF initially entered the Lucid investment in 2018, providing a $1 billion investment to support the emerging competitor to Tesla. Presently, PIF controls 60.5% of Lucid, having committed an additional $1.8 billion as part of a $3 billion funding round announced by Lucid in May.
These investments align with Saudi Arabia’s broader strategy of diversifying its economy away from reliance on fossil fuels and fostering the development of its own electric vehicle (EV) industry. In March 2022, Lucid revealed plans to establish its first international EV plant in Saudi Arabia, while in November, MBS announced the launch of Ceer, the country’s inaugural domestic EV brand.
Aston Martin on Lucid Partnership
Aston Martin’s upcoming lineup of ultra-luxury high-performance electric vehicles (EVs), including hypercars, sports cars, GT models, and SUVs, will be built on an all-new modular BEV platform.
As part of a strategic supply agreement, Lucid Group will provide Aston Martin with access to cutting-edge technologies. This long-term partnership involves Lucid supplying select powertrain components for both initial and future Aston Martin EV models.
The electrification strategy is a crucial aspect of Aston Martin’s broader Green Sustainability strategy. It represents a significant investment of £2 billion in technology to drive the company’s shift towards sustainable mobility.
Mercedes-Benz AG will continue to collaborate with Aston Martin, granting them access to a range of top-tier technologies. This collaboration encompasses powertrain systems and electric/electronic architectures for Aston Martin’s current and upcoming vehicle models, spanning internal combustion engines, hybrids, and electric vehicles.
On June 26, 2023, Aston Martin announced a significant milestone in its pursuit of creating the most exhilarating and desirable electric performance cars globally. The company entered into a groundbreaking supply agreement with Lucid Group, a leading provider of electric vehicle technologies. This collaboration will propel Aston Martin’s high-performance electrification strategy and support its long-term growth objectives.
Under the proposed agreement, Lucid, renowned for its advanced electric powertrains and battery systems, will supply Aston Martin with industry-leading electric vehicle technologies. These technologies, including powertrain and battery advancements, will form the foundation of Aston Martin’s in-house Battery Electric Vehicle (BEV) platform.
Aston Martin’s electrification program is a key pillar of its broader Racing. Green. sustainability strategy, and the company plans to invest over £2 billion in advanced technologies over the next five years, with a phased transition from internal combustion engines (ICE) to BEV technology.
Lawrence Stroll, Executive Chairman of Aston Martin, expressed that the supply agreement with Lucid marks a transformative moment for Aston Martin’s EV-driven growth. By partnering with Lucid, Aston Martin gains access to the industry’s most innovative and high-performance technologies for their future BEV products. Stroll also emphasized the company’s commitment to enhancing the driving experience through their internal development efforts, in line with Aston Martin’s ultra-luxury and high-performance strategy.
Stroll highlighted the significance of their partnership with Mercedes-Benz, which provides access to world-class technologies, including powertrain and electric/electronic architectures. This collaboration ensures Aston Martin can continue developing current and future generation vehicles, encompassing ICE, hybrid, and electric models. Additionally, Aston Martin’s recently announced long-term partnership with Geely presents an opportunity to access a range of technologies, components, and expertise in the strategic market of China.
The press release also revealed Aston Martin’s plan to introduce an all-new bespoke platform, developed in-house, that will underpin their entire future range of electrified models. This range will encompass hypercars, sports cars, GTs, and SUVs, with the first launch targeted for 2025. Before that, in 2024, Aston Martin aims to deliver its first plug-in hybrid model, the Valhalla. By 2026, every new Aston Martin model line will offer an electrified powertrain option, and the company’s long-term objective is for its core range to be fully electrified by 2030.
Furthermore, Aston Martin highlighted the critical role of precise power delivery and control in its upcoming electrified models. Lucid’s cutting-edge powertrain technology, combined with Mercedes-Benz electronic architecture, will provide exceptional battery system efficiency, precise torque vectoring, and advanced energy discharge and recuperation. These features will contribute to Aston Martin’s renowned driving dynamics and elevate the overall performance and enjoyment of their BEV models.
The company’s development efforts are supported by Aston Martin Performance Technologies (AMPT), the consulting arm of the Aston Martin Aramco Cognizant Formula One® team. Leveraging Formula One® expertise, AMPT accelerates development, increases efficiency, and enhances performance in Aston Martin road car programs.
Aston Martin recognizes the importance of active aerodynamics, drag reduction, and intelligent powertrain management to enhance efficiency and extend the range of its BEV models. The brand aims to optimize airflow management, implement active cooling vents, and utilize sleek bodywork that no longer requires air intake for internal combustion engines. Collaborations with partners like Brembo and Pirelli are also instrumental in developing cutting-edge technologies for improved vehicle range, brake response, and tire performance.
The supply agreement with Lucid signifies Aston Martin’s unwavering commitment to establishing itself as a world-leading, sustainable, ultra-luxury high-performance brand. Whether through the development of ICE, PHEV, or BEV road cars, or competing in Formula One®, Aston Martin’s Racing. Green. sustainability strategy showcases the company’s dedication to building exceptional cars for future generations.