• Aston Martin confirmed an agreement with Lucid Motors to use its EV technologies.
Aston Martin is another of the more niche-market exotic-car manufacturers preparing to go all-electric. For a smaller company operating with more limited resources, the way to do this is often through a partnership.
This week, we learn that the British automaker has entered an agreement with manufacturer Lucid Motors to use its next-generation battery for its future electric models. In fact, the fledgling American EV maker will supply a large part of its technology to Aston Martin.
Aston Martin's first electric model is scheduled for 2025.
The deal between Lucid Motors and Aston Martin
In exchange for its expertise, Lucid Motors will receive $132 million USD, plus gain a 3.7-percent stake in Aston Martin, representing an added value of $100 million. Aston Martin is also guaranteed to buy at least 225 million powertrain components from Lucid.
Aston Martin boss Lawrence Stroll told reporters that taking over the company had proved to be the biggest challenge of his career, acknowledging that “I understood some things, but others, not at all.”
Challenges have included managing excess inventory, halting production for almost a year and raising the funds needed to develop new models, notably through an agreement to used Mercedes-Benz-owned technology.
That agreement covered both AMG's V8 engines and Mercedes' electronic architecture, which Aston Martin already uses. It was also to include the German automaker’s expertise in electric vehicles, but the new agreement with Lucid puts an end to this. However, the partnership with Mercedes continues for combustion engines and hybrid powertrains.
Aston Martin has already explored electric power with the Rapide sedan. A prototype was produced but it never led to a production model. The company then gave consideration to developing the brand's own electric platform, but the idea was abandoned for financial reasons. In this context, the expertise of Lucid Motors appears to be a lifeline.
That’s especially so given that the technology developed by Lucid for its Air sedan is impressive. We'll have to wait and see how the whole thing takes shape, but this is news that could benefit both companies.