The PIF, which previously held 17.9 per cent shareholding in Aston Martin, will award the new shares to luxury electric vehicle maker Lucid Group, according to a filing on Wednesday to the London Stock Exchange.
The move comes after PIF-backed Lucid and Aston Martin agreed in June to establish a long-term strategic technology partnership to support the British brand’s “high-performance electrification strategy and long-term growth”.
The deal will involve the integration and supply of Lucid’s electric vehicle power train and battery systems in contracts worth more than $450 million, the EV maker said at the time.
Aston Martin will pay Lucid technology access fees in a combination of shares and phased cash payments, with the US company becoming a shareholder in the British car maker, it said.
The deal is part of Aston Martin’s electrification programme, which will include an investment of more than £2 billion ($2.45 billion) in advanced technology over the next five years.
The global EV industry is booming and is projected to reach about $1.6 trillion by 2030, from an estimated $500 billion in 2023, according to data from Fortune Business Insights.
The PIF is playing a key role in supporting Saudi Arabia's ambitions to develop and expand its presence in the mobility sector, with a focus on EVs.
The California-based company has started assembly of its first luxury sedan – Lucid Air – at the factory near Jeddah, it said.
The PIF last month also launched a new company – National Automotive and Mobility Investment Company, or Tasaru Mobility Investments – to boost EV manufacturing in the kingdom and develop local supply chain capabilities.
Tasaru intends to localise manufacturing and technology to accelerate the development of the kingdom’s EV and autonomous mobility ecosystem, the PIF said.
The fund also teamed up with the Saudi Electricity Company to launch a new EV infrastructure company in October that plans to set up 5,000 fast chargers across the country by 2030.
In November last year, the PIF launched the kingdom's first EV brand, Ceer, which aims to attract more than $150 million in foreign direct investment and create up to 30,000 direct and indirect jobs.