The Saudi PIF is quite likely to have facilitated a game-changer partnership deal between Lucid Group and the British luxury carmaker Aston Martin, paving the way for the former to start monetizing its stellar battery and electric drivetrain technology.
$lcid
Aston Martin will pay a $232 million technology access fee to Lucid, including $100 million in shares of Aston Martin and $132 million in cash payments over a three-year period.Aston Martin also committed to a minimum spend on Lucid powertrain components of $225 million. pic.twitter.com/mQDIMS2Azj
— Tristan Cornely 𓄀 (@CornelyTristan) June 26, 2023
As we noted yesterday, Lucid Group will supply EV powertrains and battery systems to Aston Martin for a pure EV model that is scheduled to launch by 2025. In return, Lucid Group will receive $450 million in total compensation, consisting of a firm commitment to purchase components worth $225 million, phased cash payments of $132 million, and the residual $100 million in the form of 28.4 million new ordinary shares of Aston Martin, which equates to a 3.7 percent stake in the British carmaker.
Aston engines are hand built there’s probably $25k of engine in each car.
Lucids motor and battery tech is good, tbh Aston would struggle to get something of comparable quality from anyone else as everyone else would be struggling to supply enough for their own needs.
Aston…
— Phil Roberts 🔋☀️🔌 (@philroberts) June 27, 2023
This deal makes economic sense for Aston Martin as Lucid Group’s powertrain and battery tech is considered top-notch. Moreover, had the British carmaker opted for an indigenous battery solution, it would have cost much more than ~$450 million to come up with components of comparable quality.
$LCID and Aston Martin have a common shareholder in Saudi Arabia's PIF. The Saudi fund became Aston Martin's second-largest shareholder last year.
— notreload (@thudderwicks) June 26, 2023
Of course, as stated earlier, the Saudi PIF is the likely mind behind this partnership deal. Consider the fact that the sovereign wealth fund is the largest shareholder of Lucid Group and the second-largest investor in Aston Martin. With the stroke of a pen, the fund just opened a lucrative monetization avenue for Lucid Group even as the company continues to struggle with economies of scale – as aptly demonstrated by its reduced FY 2023 target of just around 10,000 vehicles, down from an already-pared-down target of 14,000 vehicles. Simultaneously, the Saudi PIF has now virtually ensured capital gains for its stake in Aston Martin by facilitating its swift transition toward electric vehicles.
Saudi Public Investment Fund (PIF) acquires more shares of $LCID for $1.8B https://t.co/FeQ4dzj8TP
— notreload (@thudderwicks) June 27, 2023
Meanwhile, the Saudi PIF appears to be in a full-blown savior mode when it comes to Lucid Group. The fund just bought 265.69 million additional common shares of the company via a private placement that was priced at $6.83 per share, corresponding to a $1.8 billion cash infusion. The sovereign wealth fund now owns a whopping 65 percent of the common shares in Lucid Group.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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