British luxury carmaker Aston Martin announced on Monday that it has reached an agreement that will give US electric vehicle maker Lucid Group a 3.7% stake in the company in exchange for access to its “high-performance” technology.
Expensive investments in electricity
On the London Stock Exchange, Aston Martin shares were up 7.82% at 08:44 GMT. Subject to shareholder approval, Aston Martin will issue approximately 28.4 million new common shares to Lucid Group. It will also make cash installment payments to Lucid totaling approximately $232 million.
Switching to electricity is extremely expensive and requires large investments. Automakers around the world have so far committed around $1.2 trillion in this field. “Small” carmakers like Aston Martin rely more on partnerships to make the transition.
A first electric Aston by 2025
Aston Martin plans to produce its first electric vehicle in 2025 and has so far relied on its partner Mercedes to provide the technology it needs.
On Monday, Aston Martin also announced that it had changed its deal with Mercedes-Benz, meaning the German carmaker will not increase its stake as planned, but will retain a stake of around 9% in Aston.
Martin and will continue to provide access to electric motor and vehicle technology.
Meanwhile, the agreement with Lucid will provide “access to Lucid’s cutting-edge technology for its battery electric vehicle (BEV), including electric powertrains and battery systems.”
Lucid and Aston Martin have a common shareholder, the Saudi Arabian Public Investment Fund (“Public Investment Fund” or PIF). The Saudi fund became Aston Martin’s second largest shareholder last year.
Source: BFM TV
