Lucid Group has announced it has entered into a long-term strategic technology partnership with Aston Martin. The partnership, valued at over $450 million, will see Lucid supply its electric powertrain and battery systems to Aston Martin.
Under the terms of the deal, Aston Martin will get a jump start on its electrification strategy by gaining direct access to Lucid’s electric powertrain technology, including its high-performance twin motor drive unit, battery technology, and Wunderbox. Additionally, Lucid will provide technical support to Aston Martin in integrating the technology into a bespoke electric vehicle platform developed by Aston Martin, as well as supplying Lucid components.
“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 516-mile EPA-estimated range achieved by the Lucid Air Grand Touring,” said Peter Rawlinson, CEO and CTO, Lucid in a press release.
For all of this Aston Martin will pay Lucid in excess of $450 million. This includes a “technology access fee” of $232 million, consisting of $100 million in shares of Aston Martin and additional cash payments totaling $132 million. Aston Martin has also committed to an “effective minimum spend” of $225 million with Lucid on powertrain components, according to a regulatory filing.
Lawrence Stroll, the Executive Chairman of Aston Martin, described the supply agreement with Lucid as a game changer for the company, which plans to launch its first pure electric model in 2025.
“The 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,” said Lawrence Stroll, Executive Chairman, Aston Martin.
This deal will provide a much needed boost in confidence to Lucid, which has been struggling since its launch in 2021. The fledgling automaker has suffered through a difficult production ramp which will see it only produce about 10,000 Air sedans this year.