American EV startup Lucid (LCID) is pursuing a new path to boost revenue and maintain competitiveness as competition in the EV market grows. According to Lucid’s CEO, the company’s recent EV tech deal with Aston Martin is just the start of its future supply business.
Aston deal the start of Lucid’s EV tech supply business
Lucid revealed the strategic tech partnership earlier this week to help advance Aston Martin’s ambitions of building “the world’s most thrilling and highly desirable electric performance cars.”
Through the deal, Lucid will supply its proprietary EV powertrain tech, including its high-performance twin motor unit, battery technology, and Wunderbox charging system. In other words, Aston Martin will have access to Lucid’s leading electric powertrain tech, represented by the 516-mile EPA-estimated range Lucid Air Grand Touring.
Lucid also plans to provide Aston with technical support to help the British luxury automaker integrate the technology into its all-new EV platform.
The electric powertrain technology is manufactured in-house at Lucid’s Grande, Arizona. factory. As the first deal of its kind for Lucid Group’s tech arm, the company said it would help expand the reach of its products while “paving the way for more mainstream applications” in the future.
Lucid CEO Peter Rawlinson told Reuters Wednesday:
This (deal) really kicks off that wing of the Lucid Group’s business.
Rawlinson stated in May that Lucid discussed licensing and selling its powertrain tech but didn’t provide any additional details or potential partners.
Although the initial focus will be on high-performance, niche market vehicles, Rawlinson mentioned that Lucid’s tech business should grow as the company introduces more mass-market EVs.
Lucid’s CEO explained:
Do we ever want to make a $25,000 car because that’s what it’s going to take to change the world?
He added:
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.
Electrek’s Take
The EV tech deal, potentially worth over $450 million, could be the start of a new, much-needed revenue source for Lucid.
Despite ending the first quarter with over $4 billion in liquidity, Lucid revealed earlier this month that it raised around $3 billion for “general corporate purposes.” The company raised $1.2 billion by selling 173.5 million shares of common stock, while the other $1.8 billion came directly from its largest shareholder, Saudi Arabia’s Public Investment Fund (PIF).
Lucid plans to produce between 10K and 14K EVs this year, with its first electric SUV, the Gravity, expected to be fully unveiled later this year.
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