On Monday, British luxury manufacturer Aston Martin (AML.L) announced a deal to give U.S. electric vehicle (EV) maker Lucid Group (LCID.O) a 3.7% share in exchange for access to its “high performance” technology.
If shareholders approve, Aston Martin will give Lucid Group 28.4 million new ordinary shares. It will also pay Lucid $232 million in installments.
Carmakers have invested $1.2 trillion in electrified technologies. Smaller carmakers like Aston Martin need alliances to adapt.
Aston Martin intends its first EV in 2025 and has relied on Mercedes as its “big brother” for technology.
On Monday, Aston Martin announced that it had revised its deal with Mercedes-Benz (MBGn.DE) to keep its investment at 9% and continue to provide engine and EV technology.
The Lucid arrangement provides “access to Lucid’s industry-leading technology for its (battery electric vehicles) BEVs, including electric powertrains and battery systems.”
Saudi Arabia’s Public Investment Fund (PIF) owns Lucid and Aston Martin. The Saudi wealth fund became Aston Martin’s second-largest stakeholder last year.
Lucid’s largest shareholder, PIF, funded a $3 billion equity offering last month.
Like its others, Lucid faces rising losses and dwindling cash reserves due to recession fears and a price battle ignited by market leader Tesla Inc (TSLA.O).
Last month, luxury Air sedan maker Lucid lowered its 2023 production forecast and reported reduced first-quarter sales.
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