Lucid and Aston Martin partner up for EVs: Aston Martin and Saudi PIF-backed EV maker Lucid Group are joining forces to make the British ultra-luxury car maker’s future electric vehicles, the two companies said in statements last week (here and here). The companies have signed contracts worth over USD 450 mn, and the agreement paves the way for Lucid to grab a 3.7% stake in Aston Martin in return for its access to “high performance” technology, Reuters reported. The agreement is still subject to the approval of Aston Martin’s shareholders and necessary regulatory approvals and other customary conditions, according to Lucid.

All part of a wide EV strategy by Aston Martin: Aston Martin plans to invest over GBP 2 bn in advanced technologies over the next five years in its transition to electric and plug-in hybrid models. It plans to unroll its first EV range in 2025 and deliver its first plug-in hybrid Valhalla in 2024, and all its new model lines will feature an electrified powertrain option in 2026. The company aims to have its core range fully electrified by 2030.

PIF is on both sides of the fence: Both companies have Saudi Arabia’s Public Investment Fund (PIF) as a common shareholder, with PIF becoming Aston Martin’s second-largest shareholder with a c. 17% stake last year. PIF owns a 60.46% stake in Lucid, and in June it provided the majority of the funds for a USD 3 bn stock offering by the US EV maker. The funds are proving necessary, as the company struggled last quarter on the back of high costs, production hurdles, and EV competition. The disappointing quarterly performance has pushed the EV manufacturer to revise its annual production plan this year to manufacture over 10k of its luxury EV sedans, down from a previous production plan of up to 14k.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • The UAE’s Ras Al Khaimah Economic Zone and the Indian Chamber of Food and Agriculture signed a knowledge transfer, investment, and research and development cooperation agreement that will see both parties partner in areas including sustainable farming. (Wam)
  • Bahrain is set to invest GBP 1 bn in Britain to boost joint cooperation in clean tech, business services, and manufacturing. (Statement)
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