Aston Martin joins forces with Lucid to produce EVs by 2025

The British carmaker is set to join forces with US firm Lucid to create high-end luxury electric vehicles by 2025.

Aston Martin and the US Company Lucid have reached an agreement to begin producing "ultra-luxury, high-performance electric vehicles" in 2025.

The London-listed luxury carmaker, whose setbacks nearly doubled to £500 million last year, has reached a deal within which Lucid will purchase a 3.7% stake in Aston Martin for £182 million in cash and shares.

The automaker announced that it would choose powertrain components from Lucid for initial and specific future battery electric vehicle (BEV) models. The company sold 6,400 luxury vehicles last year and has heavily invested in new models.

According to the company, the contract, which stipulates having to spend a minimal level of £177 million with Lucid, would encourage the debut of its first BEV in 2025.

A long-term strategic partnership between Mercedes-Benz and Aston Martin includes a 9.4% stake in the British automaker as well as participation on the board of directors and technology sharing.

One of the biggest independent automakers in China, Geely, doubled its ownership of Aston Martin to 17% last month.

The luxury carmaker became the biggest gainer in the FTSE 250 after hearing about the deal, sending its shares up 10%. This strong rebound in market sentiment has increased Aston Martin's market value by nearly 80% over the past 12 months.