Lucid Motors strikes deal to power Aston Martin’s future lineup of EVs

Lucid Motors will supply powertrain technology to Aston Martin for the British brand’s future lineup of electric vehicles, the two companies announced Monday. The deal brings together two companies with deep ties to motorsports, as well as brand identities centered on performance luxury.

Under the deal, Lucid will supply Aston Martin with its electric motors and batteries that have been used to power the California-based company’s only model, the Lucid Air sedan. Aston Martin will then take that technology and plug it into its own bespoke EV models. Lucid CEO Peter Rawlinson hailed the deal as “a landmark collaboration.”

Aston Martin, an iconic British luxury car brand with wins in Le Mans and F1 under its belt, plans to launch its first plug-in model, the mid-engine hybrid Valhalla, in early 2024, followed by a pure battery-electric vehicle (BEV) the following year. All of the company’s models will be hybrid or BEV by 2026 and purely electric by 2030.

Lucid’s dual-motor Air has distinguished itself in the crowded luxury EV market with its long-range and high-performance specs. The $154,000 Air GT, for example, includes a 112kWh battery that can put out 819 horsepower and propel the vehicle to 60 mph in about two seconds. The base model Air has an EPA range of over 500 miles — though it’s been found to get slightly less in testing.

Under the agreement, Aston Martin will pay a “technology access fee” of $232 million to Lucid, comprising $100 million in shares of the British company and “aggregate cash payments” of $132 million. Aston Martin will also commit to an “effective minimum spend” with Lucid on powertrain components of $225 million.

Both companies have had their respective financial difficulties. Aston has survived seven bankruptcies throughout its 110-year history, while Lucid has seen its stock price plummet since going public in 2021. The company, which is majority owned by Saudi Arabia’s Public Investment Fund, recently announced a $3 billion stock sale amid its rapidly dwindling cash stockpile.

Until recently, Aston Martin has relied on Mercedes-Benz as its technology partner, but those terms appear to be changing. In a separate announcement on Monday, the company said the German auto giant would not be increasing its stake in Aston but would instead be maintaining its 9 percent ownership.