When it comes to preferred electric vehicles, it appears that the famed spy James Bond chooses something other than Tesla. Rather, Aston Martin, the luxury car maker, is looking to Lucid to supply battery components and technology for their latest venture into electric cars.
This latest move is yet another example of the electric vehicle industry expanding beyond their primary product of cars. As a result, Lucid stock has risen almost 10% in pre-market trading, while shares of Aston Martin have surged 9.2% overseas.
For Lucid investors who have recently faced some challenges, this announcement undoubtedly serves as a welcome boost. With Lucid’s value hovering around $10 billion, compared to Aston Martin’s approximate value of $4 billion, the partnership places Lucid in an advantageous position.
The companies are set to launch their first battery-electric vehicles (BEVs) around 2025, with battery systems included in the deal. It is clear that the future of electric vehicles is looking brighter than ever before.
Lucid and Aston Martin Strike Battery Supply Deal
Lucid, the electric vehicle startup, has struck a deal to supply British luxury car maker Aston Martin with batteries. While many automakers have begun to produce their own batteries, Lucid sources its batteries from Panasonic and others. Building battery plants is an expensive endeavor, and Lucid needs cash to build its car business. The automaker is expected to use $2 billion in 2023 and $1.3 billion in 2024, and it ended the first quarter with about $4 billion in total liquidity.
To help it raise funds, Lucid will become a 3.7% shareholder in Aston Martin and receive a payment of £104 million ($132 million), which could eventually reach $232 million, pending shareholder approval. Both companies have a common shareholder in Saudi Arabia’s Public Investment Fund. Peter Rawlinson, CEO of Lucid, said the deal shows the benefits of adopting world-leading electric drivetrain technology.
Aston Martin, which is relatively small compared to bigger players like Mercedes-Benz, had initially planned to buy battery components from Mercedes. However, the company will now source its batteries from Lucid. Nevertheless, Aston Martin will continue to work with Mercedes by providing engines and other equipment.
The deal is significant for Lucid as it proves there is value in its technology beyond the cars it produces under its own brand. The tie-up with Aston Martin should also provide the budding automaker with some much-needed cash as it aims to compete with industry heavyweights such as Tesla.
A Unique Trans-Atlantic Partnership
A historical British brand and a cutting-edge U.S. EV start-up have joined forces in a rare and exciting collaboration.
The partnership brings together a wealth of skills, expertise and innovation to create something truly unique and groundbreaking. It’s a collaboration that promises to shake up the industry and change the very landscape of electric vehicles.
The combination of British heritage and American ingenuity is a winning one, and the result is sure to be something truly special. Keep an eye out for this exciting new development in the world of electric cars!
