Lotus Tech Secures $23M from ECARX to Power Next-Gen AI Cockpits

NEW YORK, NY – December 29, 2025 – Lotus Technology Inc. (Nasdaq: LOT), the iconic brand navigating a bold transition into a global provider of luxury electric vehicles, has announced a significant strategic investment from key technology partner ECARX Holdings Inc. (Nasdaq: ECX). The US$23 million private placement solidifies a deepening alliance aimed at co-developing the next generation of intelligent, AI-driven vehicle cockpits.

According to the share subscription agreement signed on December 23, 2025, ECARX will purchase 16,788,321 newly issued ordinary shares of Lotus Tech at a price of US$1.37 per share. The deal, subject to customary closing conditions, is expected to be finalized within 30 days. As a signal of its long-term commitment, ECARX has agreed to a six-month lock-up period for the newly acquired shares.

While the capital infusion is notable, the strategic implications of the deal far outweigh the monetary value. This investment is designed to transform an existing supplier relationship into a deeply integrated global partnership, positioning both companies to compete more effectively in the rapidly evolving software-defined vehicle landscape.

A Deepening Strategic Alliance

This move is a formalization of an already symbiotic relationship. For years, Lotus has leveraged ECARX's expertise in its mission to pivot from a celebrated maker of lightweight sports cars to a purveyor of high-tech, luxury electric vehicles. This investment ensures a more profound and intertwined future.

Mr. Qingfeng Feng, Chief Executive Officer of Lotus Tech, emphasized the collaborative nature of the deal. “This investment strengthens our long-standing partnership with ECARX, a pivotal collaborator in our mission to redefine in-vehicle intelligence,” he stated. “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.”

The partnership aims to tightly integrate ECARX’s advanced computing hardware and software into future Lotus vehicles. Specifically, the collaboration will leverage ECARX’s “Pikes” computing platform and its “Cloudpeak” software platform. This combination is intended to provide the robust foundation necessary for Lotus to deliver a world-class intelligent driving experience, complete with seamless connectivity, over-the-air updates, and sophisticated AI-powered user interfaces.

Mr. Ziyu Shen, CEO and Chairman of ECARX, echoed this sentiment, framing the investment as a natural evolution. “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 commented. “Lotus is an iconic brand with strong global recognition, and I remain optimistic about its growth potential in international markets.”

The Geely Ecosystem Connection

Underpinning this strategic partnership is a significant, shared connection: Zhejiang Geely Holding Group. Geely is the majority shareholder of Lotus and was instrumental in its public listing and transition toward electrification. Simultaneously, ECARX was co-founded by its CEO Ziyu Shen and Eric Li (Li Shufu), who is the founder and chairman of Geely.

This context reframes the investment not just as a deal between two independent public companies, but as a strategic alignment within a broader, highly sophisticated automotive ecosystem. By ensuring its key technology partner is also a direct stakeholder, Lotus secures a deeper commitment and a more integrated development process. This structure is designed to reduce friction and accelerate the product development lifecycle, a critical advantage in the fast-paced EV market.

ECARX, founded in 2017, has rapidly become a powerhouse in automotive technology. The company provides full-stack, turnkey solutions for automakers, covering everything from the system-on-a-chip (SoC) to central computing platforms and cloud-based software. Its technology is already embedded in approximately 10 million vehicles worldwide, giving it vast experience and scale. For Lotus, this means access to proven, cutting-edge technology that can be tailored to its luxury brand identity.

The Race for the Software-Defined Vehicle

The automotive industry is undergoing a fundamental transformation where the digital experience is becoming as important as mechanical performance. This concept, known as the software-defined vehicle (SDV), treats the car as a connected device that can be continuously improved and personalized through software updates. This deal places Lotus and ECARX squarely in the center of this technological arms race.

By securing a dedicated partnership for its core computing and software stack, Lotus aims to challenge competitors who have built their brands on superior in-car technology. The goal is to create an intuitive, responsive, and feature-rich digital cockpit that becomes a key selling point for its lineup of electric vehicles, including the Eletre SUV and Emeya hyper-GT.

The investment from ECARX serves as a strong vote of confidence in this strategy. As Mr. Feng noted, it “demonstrates a strong vote of confidence in our long-term value creation for shareholders.” For the market, it signals that Lotus is not just buying off-the-shelf components but is co-developing a bespoke digital architecture with a leading specialist. This integrated approach is crucial for delivering the seamless and premium user experience that luxury buyers increasingly demand, moving beyond simple infotainment to a fully connected, AI-enhanced mobility ecosystem.