Lucid Gets Stake in Aston Martin and Will Supply Batteries for Luxury Car Maker

Lucid will become a 3.7% shareholder in
Aston Martin,
(AML.U.K.), subject to shareholder approval, and receive a payment of £104 million ($132 million), which potentially could amount to $232 million. While the payment is small compared with Lucid’s recent $3 billion in recent stock sales, it still will be welcome given the costs involved in an EV  start-up.

The pair both have a common shareholder in Saudi Arabia’s Public Investment Fund.

Peter Rawlinson, CEO of Lucid, said in a statement: “In line with its strategy, Aston Martin selected Lucid, recognizing the profound benefits of adopting its world-leading electric drivetrain technology.”

Aston Martin, which is a relatively small car maker, had a deal to buy batteries from bigger partner
Mercedes-Benz
(MBG.GERMANY) but will now buy them from Lucid. Aston Martin will continue its relationship with Mercedes, providing engines and other equipment. However, the German car giant will no longer raise its 9% stake in Aston, according to a separate statement.

The deal is significant for Lucid, a
Tesla
(TSLA) rival, because it shows its tech has a value beyond the vehicles it is able to produce on its own line. This could also be the start of an interesting trans-Atlantic partnership that combines the skills of a historic British brand with an upcoming cutting edge U.S. EV start-up.

Write to Rupert Steiner at [email protected]