Aston Martin Lagonda Global Holdings Plc is tying up with Lucid Group Inc. on electric vehicle technology, uniting the storied British carmaker and relative automotive newcomer both backed by Saudi Arabia’s sovereign wealth fund.
Aston Martin will issue new shares to Lucid and make cash payments totaling $232 million in exchange for battery-electric powertrain components, the companies said Monday. The UK manufacturer also extended a years-long cooperation with Mercedes-Benz Group AG, though it will no longer issue more stock to the German carmaker that already owns a roughly 9% stake.
The announcements sent Aston Martin shares soaring as much as 15%, their biggest intraday jump in over a month, while Lucid advanced as much as 9.1% in premarket US trading.
“The proposed supply agreement with Lucid is a game changer for the future EV-led growth of Aston Martin,” Chairman Lawrence Stroll said in a statement.
Stroll, 63, is three years into an effort to turn around the 110-year-old British manufacturer with a long history of financial trouble. Aston Martin has needed several capital raises since he rescued the company in early 2020, the most recent of which made China’s Zhejiang Geely Holding Group Co. and Saudi Arabia’s Public Investment Fund major shareholders.
The Public Investment Fund, or PIF, owns about 49% of Lucid and 18% of Aston Martin, according to data compiled by Bloomberg.
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