The automotive industry can be a bit of a copycat industry. When an automaker finds success with a particular strategy, you can be sure that competitors across the street will take notice. Maybe we’ll see some of that, with recent evidence of that Bright (NASDAQ: LCID) is in talks with automakers about a possible partnership – perhaps similar to Rivaans‘S (NASDAQ: RIVN) joint venture agreement Volkswagen.
Bright CEO Peter Rawlinson noted that the electric vehicle (EV) maker is currently in active discussions with “a few” automakers about supplying its technology. Lucid’s EV technology is highly regarded in the industry and the company is willing to share its technology in exchange for a partner with a more established supply chain and manufacturing.
It would not actually be the first deal for Lucid, as the company previously entered into a partnership with luxury British car manufacturer Aston Martin. The partnership calls for Lucid to supply its EV powertrain technology to Aston Martin to develop a new EV platform.
“It would be great if we could provide technology to a traditional car company to help them move towards sustainability,” Rawlinson said in an interview with Bloomberg. “Maybe we can leverage economies of scale with their parts bin and other aspects of the business.”
These potential deals, partnerships or joint ventures could be lucrative for a young EV maker. Consider Rivian’s recent partnership with Volkswagen in a deal worth up to $5.8 billion. Volkswagen has already invested its initial $1 billion in Rivian, and upon closing of the joint venture, Volkswagen will inject another $1.3 billion. The remaining $3.5 billion is expected to be generated at a later date in the form of convertible bonds and other debt.
It comes at the perfect time for Rivian, as the company is gearing up to launch its R2 crossover in 2026. Volkswagen will finance 75% of the shared platform costs within the joint venture, while Rivian will cover the remaining 25%.
Lucid is currently in a similar scenario, with the recent launch of its Gravity SUV and its plans to launch a number of mid-size EVs aimed squarely at Tesla’s core Model 3 and Model Y territory. The first vehicle to hit the market will be an electric SUV priced around $50,000; The plan is for production to begin at the end of 2026.
With the upcoming launches, Lucid could certainly use a cash injection and partner with a more established supply chain and deep pockets. Moreover, it would also ease some investors who worry that Lucid will be dependent on Saudi Arabia’s Public Investment Fund (PIF), which recently pumped $1.5 billion in cash into the company over the summer. In fact, the wealth fund owns roughly 60% of Lucid and has continued to pump billions into the company.
