Luxury electric vehicle manufacturer Lucid has announced its intentions to pursue additional deals in selling its cutting-edge EV equipment, with its recent collaboration with Aston Martin marking just the beginning of its expansion plans. Under the newly announced agreement with the British luxury carmaker, Lucid will supply Aston Martin with various technological components, including a rear drive unit equipped with twin motors, battery modules, and software integration systems. These parts will be sourced from Lucid’s Arizona-based plant.
CEO Peter Rawlinson expressed his enthusiasm regarding the partnership, stating, “This deal truly inaugurates Lucid Group’s venture into the technology supply business.” Last month, Rawlinson had hinted at Lucid’s discussions concerning the licensing and sale of its powertrain technology, though specific details regarding potential partners and timelines were not disclosed.
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Initially, Lucid will focus on offering high-performance, ultra-high voltage technology, catering to niche markets rather than targeting the mass-market segmentāan approach demonstrated by the Aston Martin deal. However, Rawlinson affirmed that as the company progresses and expands its product range to include more mass-market models, its business of licensing out parts will also grow.
Lucid’s future plans involve developing a model to rival Tesla’s popular mass-market offering, the Model 3, which is slated for release in the second half of the decade. By supplying technology to other automakers, Lucid aims to bolster its business prospects and overcome challenges such as mounting losses, dwindling cash reserves, and intensified pricing competition ignited by industry leader Tesla.
The strategy of becoming a key supplier to established car manufacturers aligns Lucid with Croatian electric sports car maker Rimac, which has also collaborated with Aston Martin and is actively seeking opportunities to provide components for mass-market models.
Regarding the prospect of creating an affordable $25,000 car, Rawlinson expressed reservations, stating, “I’m uncertain if we want to venture into that market. However, licensing our technology to a company that could pursue such a venture would make more sense.”
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Notably, Aston Martin and Lucid share a common shareholder in the form of Saudi Arabia’s Public Investment Fund (PIF). Despite this connection, Rawlinson emphasized that the Saudi wealth fund did not play a role in the recent deal with Aston Martin. “Aston Martin had several options, and they independently selected what they considered to be the best technology available globally,” he clarified.
As Lucid establishes itself as a key player in the technology supply arena, its collaboration with Aston Martin serves as a strategic stepping stone towards future partnerships. With a focus on supplying cutting-edge EV components, Lucid aims to solidify its presence in the rapidly evolving automotive industry and pave the way for sustainable growth in the years to come.
