Lotus and ECARX Deepen Alliance with $23M Deal to Power AI in Luxury EVs

NEW YORK, NY – December 29, 2025 – Lotus Technology Inc. (Nasdaq: LOT) today announced a significant deepening of its partnership with global mobility tech provider ECARX Holdings Inc. (Nasdaq: ECX), cemented by a US$23 million strategic investment. The deal, finalized through a share subscription agreement on December 23, will see ECARX acquire 16,788,321 newly issued ordinary shares of Lotus Tech at a price of US$1.37 per share.

This private placement, expected to close within 30 days, is more than a simple capital injection; it represents a strategic consolidation of a long-standing collaboration aimed at redefining the digital experience inside luxury electric vehicles. The investment strengthens the bond between the iconic performance brand and the automotive tech powerhouse, signaling a shared ambition to dominate the burgeoning market for intelligent, AI-driven mobility. The shares will be subject to a six-month lock-up period.

Mr. Qingfeng Feng, Chief Executive Officer of Lotus Tech, commented on the move, stating, “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.”

A Partnership Forged in Silicon

The alliance between Lotus Tech and ECARX is not new. It is a proven collaboration with tangible results already on the road. The most prominent example is the advanced digital cockpit inside the Lotus Eletre, the brand's all-electric “Hyper-SUV.” This system is powered by ECARX's next-generation digital head unit (DHU), a sophisticated piece of hardware designed for server-level computing power.

This DHU leverages a dual-chip architecture, a critical design for ensuring both performance and safety. One powerful System-on-a-Chip (SoC), the Qualcomm Snapdragon 8155, handles the infotainment and user experience, while a secondary chip manages critical driving information displayed on the instrument cluster and heads-up display. This separation ensures that essential vehicle functions are never compromised by the demands of the infotainment system. The interface itself is rendered using the high-fidelity Unreal Engine, creating a visually rich and responsive 3D environment for the driver.

This existing integration already showcases the synergy between the two firms. ECARX provides the core computing brain, which connects seamlessly with other best-in-class technologies, such as the two NVIDIA Orin-X chips that power the Eletre's Advanced Driver-Assistance Systems (ADAS). This ecosystem approach allows Lotus to deliver a cutting-edge experience, incorporating features like EV-specific navigation from HERE Technologies to intelligently manage range anxiety—a crucial factor for luxury EV buyers.

The Strategic and Financial Underpinnings

For Lotus Tech, the US$23 million infusion provides valuable capital as it navigates a competitive and capital-intensive market. While the company's revenue saw a year-over-year decrease in early 2025, its financial picture has shown signs of stabilization. In the third quarter of 2025, Lotus reported a total revenue of $137 million and successfully narrowed its net loss by approximately 68% year-over-year to $65 million. The investment from a key technology partner serves as a powerful vote of confidence in its long-term strategy and brand value.

With a market capitalization hovering around $950 million, the investment will give ECARX an approximate 2.53% stake in the luxury automaker, establishing it as a key strategic shareholder. From ECARX's perspective, the deal is a calculated move to secure a flagship partner for its next generation of products. The company, which recently celebrated its first profitable quarter in Q3 2025, is positioning itself as a foundational technology provider for the software-defined vehicle era.

Mr. Ziyu Shen, Chief Executive Officer and Chairman of ECARX, reinforced this vision, stating, “This strategic investment represents a natural and significant step forward in ECARX’s evolving partnership with Lotus Tech, building upon the deep technical collaboration we already share.” He specifically highlighted the future integration of ECARX's Pikes computing platform and its Cloudpeak software platform, which are designed to create a robust foundation for next-generation intelligent driving.

Racing Ahead in a Crowded Field

The push for smarter cars has created a fiercely competitive landscape. The Lotus-ECARX alliance is positioning itself against a formidable array of players, including technology giants like Qualcomm and NVIDIA, who supply the core silicon, and other automakers like Tesla and Mercedes-Benz, who are developing proprietary software ecosystems. The battle is for control of the vehicle's digital soul.

The partnership's strategy appears to be one of curated integration rather than complete verticalization. By combining ECARX's full-stack computing platforms with leading components from Qualcomm and NVIDIA, and layering in established software like Google Automotive Services (GAS), Lotus can assemble a world-class digital experience without bearing the entire R&D burden alone. The press release explicitly mentions the goal of accelerating the global deployment of ECARX's platforms with GAS in future Lotus vehicles, signaling a move towards a globally standardized, scalable, and feature-rich software stack.

This approach aligns with broader industry trends toward software-defined vehicles (SDVs), where a car's functionality and user experience are increasingly determined by software that can be updated over the air. This enables continuous improvement, personalization, and the potential for new subscription-based revenue streams, transforming the car from a static product into an evolving digital platform.

Market Reaction and Future Trajectory

The market responded positively to the deepened alliance, with ECARX's stock (ECX) seeing a 5.2% jump in premarket trading following the announcement. This reaction underscores investor belief in the symbiotic nature of the partnership, where ECARX gains a premier global showcase for its technology and Lotus secures a dedicated partner to power its ambitious product roadmap.

The collaboration is set to expand beyond the Eletre. The stated goal is to deploy ECARX's advanced Pikes computing platform and Cloudpeak software across Lotus's future vehicle lineup. This ensures that as Lotus expands its portfolio, including a planned plug-in hybrid model for Q1 2026, its vehicles will be underpinned by a consistent and powerful digital architecture. This investment is not just about enhancing current models; it is about building the technological foundation for the next decade of luxury performance vehicles from the iconic British brand.