Aston Martin would issue around 28.4 million additional ordinary shares and pay Lucid about $232 million in staged cash payments under the proposed deal, making Lucid a 3.7% shareholder in the automaker.
On Monday, the British luxury automaker Aston Martin announced that it would collaborate with Lucid Group to produce “high-performance” EVs.
As part of the arrangement, U.S.-based luxury EV manufacturer Lucid will provide Aston Martin with specific powertrain components for the company’s first battery-electric vehicle (BEV) models as well as a few others in the future.
The partnership seeks to reinvent the buying experience for the next Aston Martin BEV models by fusing the renowned brand, superb luxury workmanship, and in-house technical prowess with Lucid’s cutting-edge technology and expertise in premium electric vehicles.
Additionally, this supply deal will support Aston Martin’s specialized creation of a single BEV platform that will be applied to its whole future lineup of electrified products. The business has identified 2025 as the launch date for its first BEV.
Aston Martin has agreed to grant Lucid 28,352,273 new ordinary shares worth about $100 million (£79 million) as part of the arrangement, elevating Lucid to the position of a 3.7% shareholder in Aston Martin. Aston Martin will also pay Lucid a total of $132 million (£104 million) in staged cash payments. The supply agreements will also include an additional $10 million (£8 million) integration fee for the work done to integrate Lucid technology into Aston Martin BEVs, as well as an effective minimum expenditure commitment of $225 million (£177 million) with Lucid on powertrain components.
The Implementation Agreement includes clauses granting Aston Martin exclusivity as well as customary warranties and termination rights. Due to the arrangement being a related-party transaction, the Company will publish a shareholder circular with notice of a general meeting in order to get approval from its shareholders.
Notably, significant Aston Martin shareholders, including Yew Tree Overseas Limited, Geely International (Hong Kong) Limited, Geely Group Limited, and Mercedes-Benz AG, have already voiced their support for the strategic supply agreement and committed to voting in favor of it at the General Meeting.
CEO of Lucid Group Peter Rawlinson expressed enthusiasm for the alliance, saying, “This partnership will represent a landmark collaboration between Aston Martin and the very best of Silicon Valley innovation and technology from Lucid.”
With the mid-engine supercar Valhalla, Aston Martin intends to start offering a plug-in hybrid option in 2024. Aston Martin plans to fully electrify its core lineup of sports, GT, and SUV cars by 2030, with all new product lines having an electrified engine option by 2026.
