Aston Martin Agrees Deal To Drive Future EV-LED Growth
Aston Martin Lagonda has unveiled an agreement with a US-headquartered electric vehicle company to create ultra-luxury high performance electric vehicles. Executive chairman Lawrence Stroll described the multimillion-pound deal as a “game changer for the future EV-led growth of Aston Martin”.
Under the terms of an initial implementation agreement entered into between Aston Martin and Lucid Group Inc, a company controlled by the sovereign wealth fund of Saudi Arabia, the parties have agreed to enter into integration and supply agreements that would provide Aston Martin with access to Lucid’s technology for its battery electric vehicles (BEVs), including electric powertrains and battery systems.
The agreement is subject to receiving shareholder approval and the satisfaction of certain regulatory and other conditions.
The proposed alignment of Aston Martin’s brand, craftsmanship and in-house engineering excellence, with Lucid’s advanced technologies and expertise in luxury electric vehicles, would create an unrivalled combination with the capabilities to re-define the customer experience for future Aston Martin BEV products.
The supply agreement would also complement the bespoke development of a single BEV platform by Aston Martin that will be utilised across its future electrified product portfolio, and support the company’s target to launch its first BEV in 2025.
Aston Martin has agreed to issue shares to Lucid equivalent to approximately $100m (£79m) in value, meaning Lucid will become a approximately 3.7 per cent shareholder in Aston Martin.
The vehicle manufacturer will also make certain phased cash payments to Lucid in the aggregate amount of $132m (£104m) and commit to an effective minimum spend with Lucid on powertrain components of $225m (£177m).
An integration fee of $10m (£8m) will also be paid in relation to adopting Lucid technology into Aston Martin BEVs.
Lawrence Stroll, executive chairman of Aston Martin, said: “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.
“We will not only leverage the significant investments Lucid has made to develop its world-class technologies, but will also further enhance and differentiate the drive experience through the work Roberto and his teams are already developing, aligned with our ultra-luxury, high-performance strategy.
“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.”
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.
“Combined with our internal development, this will allow us to create a single bespoke BEV platform suitable for all future Aston Martin products, all the way from hypercars to sports cars and SUVs”
Peter Rawlinson, chief executive of Lucid Group, said: “This partnership will represent a landmark collaboration between Aston Martin, a storied marque with a rich history, including winning at Le Mans and its current successes in F1, and the very best of Silicon Valley innovation and technology from Lucid.
“In line with its strategy, Aston Martin selected Lucid, recognizing the profound benefits of adopting its world-leading electric drivetrain technology, exemplified by the breakthrough 520-mile EPA-estimated range achieved by the Lucid Air Dream Edition.”
Seperately, Aston Martin and Mercedes-Benz AG announced that they have agreed to amend and restate their strategic co-operation agreement (SCA), originally entered into in 2020.
The SCA provided Aston Martin with access to a wide range of MBAG’s technology, in consideration for which Aston Martin agreed to issue consideration shares in at least two tranches by no later than July 2024. The second of these tranches currently remains unissued.
The amendment agreed between the parties today will see the agreement to issue this second tranche of consideration shares replaced with a restated commitment to the existing strategic collaboration between Aston Martin and MBAG in connection with the potential future supply of MBAG technology to Aston Martin, payable for in cash.
Mercedes-Benz AG will continue to provide Aston Martin with access to a range of technologies, including powertrain and electric/electronic architectures for current and future generation Aston Martin vehicles, including internal combustion engine, hybrid and electric vehicles.
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Source: https://www.insidermedia.com/
