ECARX Invests $23M in Lotus to Power Next-Gen Smart Cockpits

LONDON – December 29, 2025 – Global mobility tech provider ECARX Holdings Inc. has announced a US$23 million strategic investment in luxury automaker Lotus Technology Inc., a move set to transform the digital experience inside future Lotus electric vehicles and accelerate both companies' global ambitions.

The deal, formalized through a share subscription agreement, will see ECARX (Nasdaq: ECX) acquire 16,788,321 newly issued ordinary shares of Lotus Tech (Nasdaq: LOT) at US$1.37 per share. While subject to customary closing conditions, the investment signals a significant deepening of an already established collaboration, evolving it into a more integrated and strategic global partnership.

A Deepening Tech Alliance

This investment is more than a financial transaction; it's a technological cornerstone for the future of Lotus vehicles. The initial focus of the expanded partnership will be the global deployment of ECARX's advanced computing and software solutions. This includes the Pikes® computing platform and the Cloudpeak® cross-domain software stack, which will be fully integrated with Google Automotive Services (GAS).

For Lotus, this means its next generation of luxury electric vehicles will feature a sophisticated, AI-driven intelligent cockpit. For ECARX, it represents a powerful validation of its technology and a significant step in its worldwide expansion, leveraging the iconic status of the Lotus brand.

"This strategic investment represents a natural and significant step forward in our evolving partnership with Lotus Tech, building upon the deep technical collaboration we already share," said Mr. Ziyu Shen, Chief Executive Officer and Chairman of ECARX, in a statement. "I look forward to seeing our Pikes computing platform combined with our world-leading Cloudpeak software platform empower Lotus to establish a robust foundation for the next-generation intelligent driving experience worldwide."

Echoing this sentiment, Mr. Qingfeng Feng, Chief Executive Officer of Lotus Tech, commented, "This investment strengthens our long-standing partnership with ECARX, a pivotal collaborator in our mission to redefine in-vehicle intelligence. This strengthened partnership underscores the deepened global collaboration with ECARX and our shared unwavering commitment to accelerate innovation of next-generation intelligent cockpit ecosystems to deliver unparalleled AI-driven experiences."

Fueling Lotus's Electric and Digital Future

The partnership arrives at a critical juncture for Lotus Technology. The historic British brand is in the midst of a radical transformation under its "Vision80" strategy, aiming to become an all-electric, intelligent luxury mobility provider by its 80th anniversary in 2028. Its first battery electric vehicles, the Eletre hyper-SUV and Emeya hyper-GT, have driven record sales, with the company delivering a record 6,970 units in 2023.

Lotus Tech projected a nearly threefold increase in deliveries to 26,000 units for 2024 as it expands into new markets, including the United States. However, this aggressive growth and expansion come with significant costs. While revenue has surged, the company reported a net loss of over US$1.1 billion in 2024, alongside a decrease in gross margin, which it attributed to tariff impacts and strategic destocking.

In this context, the partnership with ECARX provides more than just capital. It offers a crucial technological shortcut, allowing Lotus to integrate a proven, cutting-edge digital platform rather than developing one entirely in-house. This can significantly accelerate product development cycles and reduce R&D overhead, enabling Lotus to focus on its core competencies in vehicle dynamics, design, and luxury craftsmanship while ensuring its cars offer a state-of-the-art user experience.

ECARX's Global Ambitions and the Competitive Landscape

For ECARX, the investment is a calculated move in its strategy for global dominance in the automotive tech sector. Founded in 2017, the company has seen rapid growth, with its total revenue climbing 31% year-over-year in 2023 to US$657.1 million. With an announced global order backlog exceeding US$2.5 billion, ECARX is positioning itself as a key supplier for the software-defined vehicle era.

The company's technology is already present in approximately 10 million vehicles worldwide across 25 brands. Its expertise in integrating Google Automotive Services is a key differentiator. ECARX is noted as the only Chinese mobility tech provider to have successfully deployed GAS for vehicle launches in overseas markets, a complex process with rigorous standards. This capability has already been demonstrated in the Polestar 4 and Volvo EX30, which launched in dozens of international markets.

By embedding its Pikes and Cloudpeak platforms in Lotus vehicles, ECARX gains a high-profile showcase for its full-stack solution in the competitive luxury segment. It places the company's technology directly against offerings from established semiconductor and software giants like Qualcomm, NVIDIA, and Mobileye, which are all vying for control of the vehicle's digital architecture.

The Geely Ecosystem Synergy

Peeling back the layers of the deal reveals a masterclass in corporate synergy orchestrated within the vast Zhejiang Geely Holding Group. Eric Li (Li Shufu), the founder and chairman of Geely, is also a co-founder of ECARX. Geely Holding, in turn, is the majority owner of Lotus Technology.

This shared lineage makes the ECARX-Lotus partnership a strategic alignment within a sprawling automotive empire that includes Volvo Cars, Polestar, Zeekr, and Lynk & Co. The investment is a clear example of Geely's strategy to foster collaboration and vertical integration among its portfolio companies, creating a powerful, self-sustaining ecosystem. By having its tech arm (ECARX) supply its luxury brand (Lotus), Geely can accelerate innovation, control its technology roadmap, and capture value across the supply chain.

This approach is a cornerstone of Geely's "Five by Five" globalization strategy, an ambitious blueprint for leading the industry through a network of global R&D centers, design studios, and cross-brand technological collaboration. The deepened partnership between ECARX and Lotus is a tangible outcome of this vision, demonstrating how Geely leverages its diverse assets to build a competitive advantage on the world stage.

This integration promises a future where Lotus drivers will benefit from a cohesive, intelligent environment powered by an ecosystem designed for continuous improvement. The integration of GAS means access to familiar apps like Google Maps for EV-specific routing and a voice-powered Google Assistant that controls everything from climate to music, all kept current through seamless over-the-air updates. This collaboration is set to redefine not just the dashboard, but the very essence of the luxury driving experience in an increasingly connected world.