American electric automaker Lucid Motors announced Monday the establishment of a “long-term strategic technology partnership” with British luxury sports automaker Aston Martin.
Notably, the partnership primarily aims to bolster the latter’s high-performance electrification strategy by obtaining Lucid’s technologies. As per the agreement, the California-based EV maker will offer Aston Martin the following technologies from its Arizona plant:
However, Lucid has no plans to stop there as it now eyes more prospective deals in the technology supply business.
Aston Martin deal marks the beginning of Lucid’s expansion into the tech supply business
Lucid CEO Peter Rawlinson announced plans to pursue additional deals following its recent partnership with Aston Martin.
As mentioned above, the agreement with Aston Martin involves the supply of various EV components and relevant systems.
CEO Rawlinson stated that the partnership with the British luxury automaker marks the initial step in Lucid’s ambitions to become a prominent player in the technology supply industry.
“This (deal) really kicks off that wing of the Lucid Group’s business.”
CEO Peter Rawlinson (via Reuters)
Lucid to focus on high-performance tech for luxury vehicles, but eyes mass-market opportunities
CEO Rawlinson disclosed that Lucid would initially focus on supplying high-performance, ultra-high-voltage technology unsuitable for the mass market, citing the Aston Martin agreement.
By focusing on the luxury market, Lucid can leverage its expertise and resources to create groundbreaking technologies catering to high-end automotive enthusiasts’ unique demands.
However, CEO Rawlinson revealed that as the company progresses towards producing more mass-market models, it plans to expand its business by licensing its EV components to other automakers. By partnering with other manufacturers, Lucid can facilitate the adoption of electric vehicles and promote sustainable transportation solutions without the need to directly enter the highly competitive mass-market segment.
“Do we ever want to make a $25,000 car because that’s what it’s going to take to change the world? I’m not sure if we want to be in that business, but licensing our tech to a company that could do that makes more sense.”
CEO Peter Rawlinson
Lucid’s move to become a supplier follows in the footsteps of Rimac Automobili
Lucid has been facing challenges similar to its competitors, such as mounting losses, tightening cash reserves, and fierce competition from EV giant Tesla.
Despite all that, the company’s move to become a supplier to other automakers mirrors the strategy of Croatian electric sports car maker Rimac.
Rimac has also partnered with Aston Martin for technology supply. Apart from that, it is now working towards delivering components for mass-market models.
Saudi Arabia’s PIF not involved in Aston Martin-Lucid deal, says Lucid CEO
The recent partnership with Aston Martin is indeed significant, considering both companies have a common shareholder, the Public Investment Fund (PIF) of Saudi Arabia.
However, CEO Rawlinson clarified that the Saudi wealth fund had no involvement in the deal.
That said, Aston Martin independently chose Lucid’s technology based on its merits.
“Aston Martin had options, and they chose quite independently what they felt is the best technology available on the planet.”
Lucid CEO Peter Rawlinson
See Also:
- Lucid Air overthrows Tesla Model S as US’ fastest-charging electric car
- Lucid Group to layoff 18% of employees, including executives
- Lucid Motors recalls 637 Air models that could lose power
- Lucid launches Apple CarPlay on every Air model in the latest over-the-air update
- Lucid expects to produce at least 10,000 electric vehicles in 2023
As Lucid continues to expand its presence in the EV market, its strategic focus on technology supply could help position the company for long-term success in an increasingly competitive industry.
The company’s focus on high-performance technology, followed by plans to expand into the mass-market segment, demonstrates Lucid’s long-term vision and determination to revolutionize the automotive industry through technological advancements.
