Aston Martin's Electric Car Funding

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【Summary】Aston Martin has received £9 million in government funding to accelerate its electrification program. The funding will help develop a new platform for electric cars, starting with an SUV and a GT by the end of the decade. The government backing is a major boost to Aston's R&D program and supports its ambition to be a leader in the luxury EV segment. The new platform will be powered by motor and battery technologies from American EV maker Lucid.

FutureCar Staff Oct 09, 2023 9:15 AM PT

Aston Martin has secured £9 million in funding from the UK government to accelerate its electrification program. This funding, provided through the Advanced Propulsion Centre (APC), will support the development of a new platform for a range of electric cars. The first electric vehicle (EV) from Aston Martin is expected to be launched in late 2025, starting with an SUV followed by a GT by the end of the decade.

The government's financial backing is seen as a significant boost to Aston Martin's research and development program. Roberto Fedeli, the chief technology officer of Aston Martin, stated that the funding will provide resources to explore the possibilities of their bespoke battery electric vehicle (BEV) platform. The company aims to become a leader in in-house BEV technology in the ultra-luxury, high-performance segment.

Ian Constance, the chief executive of the APC, highlighted the diverse set of original equipment manufacturers (OEMs) and suppliers involved in this funding announcement. He emphasized that this demonstrates the strength of the UK automotive industry and its commitment to achieving the country's net-zero ambition.

Aston Martin's new platform will be powered by motor and battery technologies supplied by American EV maker Lucid. The partnership with Lucid was confirmed in June after a competitive tender process. Aston Martin chairman Lawrence Stroll stated that the deal had been in the making for over two and a half years and that Lucid emerged as the outstanding partner for Aston Martin's EV aspirations.

The agreement between Aston Martin and Lucid involves a $232 million (£182 million) deal, with Lucid acquiring a 3.7% shareholding in Aston Martin. This shareholding was enabled by £79 million in equity provided by Aston Martin. The remaining balance will be paid in cash installments until 2026, and Aston Martin will also contribute £177 million for the components as part of a long-term supply deal.