Aston Martin switches to start-up Lucid for batteries

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Aston Martin has ditched a plan to buy batteries from Mercedes-Benz and instead struck a deal with US start-up Lucid, as the UK luxury-car maker prepares to launch electric vehicles in 2025.

Under the deal announced on Monday, Lucid will take a 3.7 per cent stake in Aston and receive a £104mn cash payment from the carmaker.

Aston, which already uses engines and other technology from Mercedes, had been due to issue fresh shares and make a large payment to Mercedes by the end of this year under a deal the pair struck in 2020. 

The payment would have given Aston access to Mercedes’ new battery systems for its electric cars, which it plans to launch from 2025. Aston will now take batteries and electric powertrains from Lucid.

The announcement comes ahead of a strategic update from Aston on Tuesday, where it is expected to set out new targets.