Lucid Motors and Aston Martin have announced a partnership that will see Lucid supply powertrain technology to Aston Martin for its future lineup of electric vehicles (EVs). The collaboration brings together two companies with deep ties to motorsports and a shared focus on performance luxury.
Under the agreement, Lucid will provide Aston Martin with its electric motors and batteries that have been used in the Lucid Air sedan, the California-based company’s only model. Aston Martin will then integrate this technology into its own bespoke EV models. This collaboration marks a significant milestone for both companies, with Lucid CEO Peter Rawlinson describing it as a “landmark collaboration.”
Aston Martin, a renowned British luxury car brand with a history of victories in Le Mans and Formula 1, has ambitious plans for its electric vehicle offerings. The company is set to launch its first plug-in hybrid model, the Valhalla, in early 2024, followed by a pure battery-electric vehicle in the following year. By 2026, all of Aston Martin’s models will be hybrid or electric, with a complete transition to purely electric vehicles by 2030.
Lucid’s flagship model, the Air, has already made a name for itself in the luxury EV market due to its impressive range and high-performance capabilities. For example, the Air GT, priced at $154,000, features a 112kWh battery that delivers 819 horsepower and accelerates the vehicle from 0 to 60 mph in about two seconds. The base model Air boasts an EPA-estimated range of over 500 miles, although real-world testing has found slightly lower figures.
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As part of the partnership, Aston Martin will pay Lucid a “technology access fee” of $232 million, consisting of $100 million in shares of the British automaker and aggregate cash payments of $132 million. Aston Martin has also committed to an “effective minimum spend” of $225 million with Lucid on powertrain components. These financial arrangements will help support Lucid’s ongoing operations and technological advancements.
Both companies have faced their fair share of financial challenges. Aston Martin has experienced seven bankruptcies throughout its 110-year history, while Lucid has seen its stock price decline since going public in 2021. The majority ownership of Lucid Motors by Saudi Arabia’s Public Investment Fund has provided some stability, but the company recently announced a $3 billion stock sale to mitigate its decreasing cash reserves.
Notably, Aston Martin has previously relied on Mercedes-Benz as its technology partner. However, the terms of that partnership are changing, as Mercedes-Benz has announced that it will not increase its stake in Aston Martin and instead maintain its 9 percent ownership.
The collaboration between Lucid Motors and Aston Martin represents a significant step forward in the development of high-performance electric vehicles. By leveraging Lucid’s advanced powertrain technology, Aston Martin aims to enhance its future EV lineup and meet the growing demand for sustainable luxury vehicles. The partnership also highlights the importance of collaboration in the automotive industry as manufacturers navigate the complexities of electrification and work towards a greener future.
