(Liberal Voice Network) – British luxury sports car manufacturer Aston Martin has taken a significant step towards embracing sustainable mobility by partnering with Lucid Group, a trailblazing electric vehicle startup based in California. Under this exciting collaboration, Lucid will supply electric motors and battery systems for Aston Martin’s forthcoming electric vehicle lineup.
Last year, Aston Martin revealed its ambitious plan to introduce its first fully electric model by 2025. Emphasizing the growing importance of eco-conscious transportation, Lucid counts Saudi Arabia’s Public Investment Fund as its largest shareholder and Aston Martin’s second-largest investor, following billionaire chairman Lawrence Stroll. Notably, Geely, the Chinese automotive conglomerate that owns renowned brands like Volvo and Lotus, recently increased its stake in Aston Martin to approximately 17%. Simultaneously, as part of this new agreement, Lucid will acquire a 3.7% stake in Aston Martin.
Highlighting the rigor of the selection process, Lucid proudly announced that it secured the collaboration with Aston Martin through a competitive evaluation. The total value of the contracts with Aston Martin exceeds $450 million, according to Lucid. Aston Martin plans to leverage Lucid’s components to develop its own expertise in electric vehicle engineering.
In addition to this partnership, Aston Martin has established ties with Mercedes-Benz, which supplies various components for both its gasoline-powered and electric vehicles. These alliances strengthen Aston Martin’s position as an independent automaker in an industry dominated by global giants such as Volkswagen Group (owner of Bentley) and BMW (owner of Rolls-Royce). By leveraging the expertise and resources of established automakers, Aston Martin can harness the benefits of technology-sharing that its competitors enjoy.
The Lucid Air, an electric luxury car starting at around $90,000, has garnered numerous accolades, including the prestigious MotorTrend Car of the Year award in 2021. However, the company has faced sales challenges, with executives attributing the struggles to “macroeconomic conditions.” Despite lower-than-expected third-quarter earnings and revised production forecasts, Aston Martin continues to showcase robust sales, particularly with its DBX SUV model. As the company ventures into the realm of electric and plug-in hybrid models, it plans to invest over £2 billion (approximately $2.5 billion) in the next five years.
The announcement of the collaboration between Aston Martin and Lucid has resonated positively with investors. Shares of Aston Martin surged by approximately 11% on Monday, reflecting the market’s enthusiasm for their commitment to sustainable transportation. Similarly, Lucid’s stock witnessed a remarkable 7% increase, further exemplifying the growing demand for eco-friendly mobility solutions.