LONDON, UK: Aston Martin Lagonda Global Holdings and Lucid Group Inc. have unveiled a groundbreaking partnership that promises to revolutionize the future of Aston Martin’s electric vehicle (EV) lineup.
The two automotive powerhouses have announced their intention to enter into a unique and innovative supply arrangement that will support Aston Martin’s high-performance electrification strategy and drive long-term growth.
The partnership, outlined in an initial Implementation Agreement, is subject to shareholder approval and certain regulatory and other conditions. Once finalized, the integration and supply agreements will grant Aston Martin access to Lucid’s cutting-edge technology for battery electric vehicles (BEVs), including electric powertrains and battery systems.
By combining Aston Martin’s iconic brand, exceptional luxury craftsmanship, and in-house engineering excellence with Lucid’s advanced technologies and expertise in luxury electric vehicles, the collaboration aims to redefine the customer experience for future Aston Martin BEV products.
This supply agreement will also complement Aston Martin’s bespoke development of a single BEV platform, which will be utilized across its entire future electrified product portfolio. The company has set a target to launch its first BEV in 2025.
As part of the agreement, Aston Martin has agreed to issue 28,352,273 new ordinary shares, valued at approximately $100 million (£79 million), to Lucid, making Lucid a 3.7% shareholder in Aston Martin. Additionally, Aston Martin will make phased cash payments to Lucid totaling $132 million (£104 million). Moreover, the supply arrangements will include an effective minimum spend commitment of $225 million (£177 million) with Lucid on powertrain components, as well as an additional $10 million (£8 million) integration fee for the work carried out to integrate Lucid technology into Aston Martin BEVs.
The Implementation Agreement includes exclusivity provisions for Aston Martin and customary warranties and termination rights. The Company will release a shareholder circular, containing notice of a General Meeting, to seek approval from its shareholders due to the agreement being a related party transaction.
Significantly, major shareholders of Aston Martin, including Yew Tree Overseas Limited, Geely International (Hong Kong) Limited and Geely Group Limited, and Mercedes-Benz AG, have already expressed their support for the strategic supply agreement and pledged to vote in favor of it at the General Meeting.
Lawrence Stroll, Executive Chairman of Aston Martin, emphasized the significance of the partnership, stating, “The proposed supply agreement with Lucid is a game changer for the future EV-led growth of Aston Martin. Based on our strategy and requirements, we selected Lucid, gaining access to the industry’s highest performance and most innovative technologies for our future BEV products.”
Roberto Fedeli, Chief Technology Officer of Aston Martin, highlighted the collaboration’s importance in Aston Martin’s electrification strategy, stating, “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, expressed excitement about the partnership, saying, “This partnership will represent a landmark collaboration between Aston Martin and the very best of Silicon Valley innovation and technology from Lucid.”
The agreement between Aston Martin and Lucid comes as part of Aston Martin’s broader Racing. Green. sustainability strategy, which aims to develop alternatives to the internal combustion engine. Aston Martin plans to offer a plug-in hybrid option with the mid-engine supercar Valhalla starting in 2024. By 2026, all new Aston Martin product lines will have an electrified powertrain option, with a goal to fully electrify its core portfolio of Sports/GT and SUV models by 2030.
Today’s announcement signifies a significant step forward for Aston Martin in its journey toward delivering its ambitious electrification plans and solidifying its position as a leading luxury electric vehicle manufacturer. The collaboration between Aston Martin and Lucid promises to bring forth a new era of electrified performance, combining the best of British craftsmanship and cutting-edge technology.
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