£182m deal fuels Aston Martin’s electric dreams
Luxury car manufacturer Aston Martin has entered into a £182m strategic supply agreement, to create high performance electric vehicles.
The deal with Lucid Group means the firm becomes a 3.7% shareholder, whilst enabling Aston Martin to access its technology for its BEVs, including electric powertrains and battery systems.
Under the terms of the deal, Aston Martin is set to issue 28,352,273 of shares to Lucid and make phased cash payments. The value of shares issued and cash payments total around £182m.
Shares issued will be worth £79m with £104m of cash payments to be made over the next three years. An initial £26m will be paid on date of the share admission to its listing on stock market. Subsequent payments will be made in 2025 and 2026.
Aston Martin will also commit to a minimum spend with Lucid on powertrain components of £177m.
It says the partnership will create an “unrivalled combination” which could “re-define the customer experience” for future products.
Peter Rawlinson, CEO 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.”
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”.
The deal is subject to shareholder approval and the satisfaction of certain regulatory conditions.
The news comes as the manufacturer says it will continue its longstanding partnership with Mercedes-Benz.
A second tranche of shares were set to be issued under the terms of the deal to continue Aston Martin’s access to its technology, but instead shares will be replaced with a restated commitment payable for in cash.
Mercedes-Benz is to remain a long-term strategic partner and 9% shareholder in Aston Martin and to retain current representation on the Aston Martin Board of Directors.
