Connect with us

Hi, what are you looking for?



Lotus Spins Off EV Division in $5.4 Billion SPAC Deal

EV subsidiary of storied Lotus Cars, Lotus Technology, is being spun out in an initial $5.4 billion SPAC merger!

The EV subsidiary of Lotus Cars, Lotus Technology, is being spun off in an SPAC-style merger with Catterton Asia Acquisition Corp. (LCAA) that’s valued at $5.4 billion!

The legendary sports car company that the late, great Colin Chapman guided to Formula 1 glory in the 20th century remains incredibly relevant in the 21st century by producing both the world’s most powerful 2000 HP electric hypercar, and developing innovations in chassis design and vehicle handling dynamics that continue to drive companies like Polestar and laid the foundations for the early success of new industry giants like Tesla (the original Tesla Roadster was, of course, based on a Lotus Elise chassis — according to the company’s CEO, Elon Musk).

More recently, Geely, the Chinese corporation that owns Volvo and Polestar, purchased the storied brand. Its integration gave Lotus access to Geely’s economies of scale, and gave Geely unfettered access to Lotus’ engineers — especially those in the Lotus Technology division, and the spinoff of that division should make it easier for them to attract automotive clients by establishing a more distinct operating entity from Lotus Cars.

The move is also likely to benefit the Lotus Cars brand by providing some of the funding it requires to launch more of its exciting electrified products like the previously-mentioned 2000 HP Evija and the more “conventional,” 600 HP Eletere SUV.

“This is an exciting time for Lotus Tech as we work towards delivering our first fully electric hyper SUV, applying our innovation and engineering expertise to meet the rising global demand for luxury EVs,” said Mr. Qingfeng Feng, Chief Executive Officer of the company. “We believe the proposed Business Combination and listing will help position Lotus Tech as a leading global luxury EV company and will enable us to further execute our strategy, accelerate our growth, and importantly, further our mission to steer the industry towards a more sustainable future.”

Over on the LCAA side, the executives seem similarly excited about the SPAC merger. “The global EV market is expanding rapidly, with the luxury segment growing at a faster pace than the broader industry. China, the EU, the UK, and the U.S. are expected to fuel the majority of this growth over the next decade as government policies in these regions provide further tailwinds for EV sales,” said Chinta Bhagat, Co-Chief Executive Officer of LCAA and a Managing Partner in the Asia fund of L Catterton. “Lotus Tech is well positioned to benefit from these dynamics, as it is a pioneer in the decarbonisation of luxury automobiles and its management team and R&D experts have demonstrated that they have the ability to lead the energy transition in the Company’s target segment and geographies. We look forward to a fruitful partnership with them to extend Lotus Tech’s technological and market leadership.”

The Business Combination transaction between Lotus Technology and LCAA values the Combined Company at approximately $5.4 billion (US), with $288 million of cash from LCAA’s trust account included under the assumption that none of LCAA’s public shareholders elect to redeem their shares. Proceeds from the Business Combination are expected to be used for further product innovation, something the company is calling “next-generation automobility technology development,” global dealer network expansion, and general corporate purposes (read: bonuses all-around, probably).

Source | Images: Lotus, via PR Newswire.

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
If you like what we do and want to support us, please chip in a bit monthly via PayPal or Patreon to help our team do what we do! Thank you!
Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Written By

I've been involved in motorsports and tuning since 1997, and have been a part of the Important Media Network since 2008. You can find me here, working on my Volvo fansite, riding a motorcycle around Chicago, or chasing my kids around Oak Park.


You May Also Like


Lynk & Co is the #1 best selling car in the overall Dutch auto market.


The Tesla Model Y is #1 again in the electric vehicle market. Registrations were up 10% year over year (YoY) in January, to over...


After the December sales peak, a covid surge, the end of EV subsidies on January 1st, and the Lunar New Year celebrations (this time...


Tesla Model Y #1 in a balanced market.

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.