Luxury EV maker Lotus Technology to list on Nasdaq via $5.4bn SPAC deal

Lotus Technology, a luxury electric vehicle (EV) maker, will go public through a business combination with L Catterton Asia Acquisition Corp, a blank check company, in an effort to deliver all-electric, sustainable luxury vehicles worldwide.

Post-closing, the combined entity with an estimated enterprise value of around $5.4bn, will retain its name Lotus Technology and will trade on the Nasdaq.

The Wuhan, China-headquartered Lotus Technology offers luxury lifestyle battery electric vehicles including SUVs and sedans, with operations across China, the UK, and the EU.

L Catterton Asia Acquisition Corp was listed on the Nasdaq in 2021 and has raised $250 million.

Lotus Technology anticipates to use the proceeds from the transaction for product innovation, developing next-generation automobility technology, distribution network expansion around the world, and standard corporate purposes.

Luxury EV maker Lotus Technology to list on Nasdaq via $5.4bn SPAC deal. Photo courtesy of Lotus Cars.

Qingfeng Feng — Lotus Technology CEO said: “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.

“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.”

Lotus Technology plans to become an advanced, 100% electric, intelligent, and sustainable luxury mobility provider by 2028 through a manufacturing partnership with its existing shareholder Zhejiang Geely Holding Group.

The Chinese carmaker Zhejiang Geely Holding has an EV manufacturing and integrated racing facility with a 150,000 annual unit capacity in Wuhan.

Lotus Technology, which operates under the British brand Lotus, is expected to deliver its first fully electric hyper SUV, Eletre in China this quarter and in the UK and EU later this year.

The transaction is expected to complete in the latter half of 2023, subject to certain closing conditions.