Lotus Technology is going public after merging with L Catterton Asia Acquisition Corp, a special purpose acquisition company (SPAC), in a deal worth $5.4 billion.
The British company works with Zhejiang Geely Golding Group to make things and uses Geely’s 150,000-unit-per-year capacity in Wuhan, China. In the future, Lotus Technology will use a business model with few assets and focus on researching, making, and selling electric vehicles around the world.
Lotus Technology is the automaker’s technology, sales, and marketing division. It says it will break new ground in electrification, digitalization, and intellectualization. It was a big part of making the all-electric Lotus Eletre SUV. It provided an 800-volt electrical performance architecture, the world’s first deployable LiDAR system, and a software system that was made by Lotus itself.
After the merger is complete, Lotus Technology will be traded on the NASDAQ under the symbol “LOT.”
In a press release, Lotus Technology CEO Qingfeng Feng said, “This is an exciting time for Lotus Tech as we work toward delivering our first fully electric hyper SUV.” “We are using our innovation and engineering skills to meet the growing global demand for luxury electric vehicles.” “We have found a partner with an impressive track record of not only creating value for companies by leveraging global consumer expertise but also bringing them to public markets and fueling their long-term growth.”
The world’s richest person, Bernard Arnault, has ties to L Catterton Asia Acquisition Corp. His company, LVMH Mot Hennessy Louis Vuitton, is a passive minority investor in the company.
“The global EV market is growing quickly, and the luxury segment is growing faster than the industry as a whole,” said Chinta Bhagat, co-chief executive of LCAA and managing partner of L Catterton’s Asia fund. Over the next ten years, most of this growth is expected to come from China, the EU, the UK, and the U.S. This is because government policies in these areas will help EV sales even more.