Aston Martin Lagonda will switch the supplier of key electric vehicle components from Mercedes to Lucid Motors, ending a deal that would have allowed the German colossus to up its stake in the iconic James Bond brand to 20%.
Lucid will make powertrain components for Aston Martin’s electric vehicles, which are set to launch in 2025 and reports claim could cost around £250,000. Lucid will receive £103 million in cash and a 3.7% stake worth £79 million.
The FTSE 250 carmaker, which has seen its shares soar this year, had a similar partnership with Mercedes, but today amended that deal. Instead of providing components in exchange for newly issued shares, Mercedes may now “discuss future access to technology for cash”.
Mercedes already owns 9% of Aston Martin Lagonda.
Lawrence Stroll, executive chairman of Aston Martin, said: "The proposed supply agreement with Lucid is a game changer for the future EV-led growth of Aston Martin. Based on our strategy and requirements, we selected Lucid, gaining access to the industry’s highest performance and most innovative technologies for our future BEV products.”
On the Mercedes deal, Stroll said: “This amendment provides clarity and will see both companies continue our long-standing relationship, providing us with access to Mercedes’ world-class technologies as we bring our new range of breathtaking products to market over the coming years.”
Franz Reiner, non-executive director and Mercedes-Benz AG Representative, said: "As a long-term shareholder, Mercedes-Benz supports Aston Martin’s future development as an independent luxury carmaker.
“Today’s revised cooperation agreement is the best of both worlds: It ensures that Aston Martin continues to have access to a wide range of Mercedes-Benz technologies, while at the same time giving the iconic British carmaker the opportunity to explore new opportunities which fit its specific needs.”
Aston Martin Lagonda shares are up 11.3% today to 364p as the new deal means less dilution . That’s 135% ahead of where they started the year.
