Aston Martin and Lucid collaborate to develop electric vehicles
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Lucid (NASDAQ:LCID) and Aston Martin (OTCPK:AMGDF) signed a long-term strategic technology partnership for the integration and supply of Lucid's state-of-the-art electric vehicle powertrain and battery systems in contracts worth in excess of $450M.
Aston Martin aims to launch an EV in 2025.
The agreement additionally involves Lucid's technical assistance in integrating its patented technology into Aston Martin's custom all-new electric car platform, as well as the delivery of Lucid components.
"The supply agreement with Lucid is a game changer for the future EV-led growth of Aston Martin," said Lawrence Stroll, Executive Chairman, Aston Martin. "Based on our strategy and requirements, we selected Lucid, gaining access to the industry's highest performance and most innovative technologies for our future BEV products."
As per the agreement, Aston Martin will make phased cash payments to Lucid and give the startup a 3.7% stake, or about 28,352,273 ordinary shares. The value of shares and cash payments should reach about $232M.
The collaboration will begin upon the consent of Aston Martin's shareholders, as well as the receipt of appropriate regulatory approvals and other customary requirements.
LCID shares up 8% during Monday's premarket hours.