ECARX Invests $23 Million in Lotus Technology, Deepening Strategic Alliance

ECARX has announced a significant strategic move, investing $23 million in Lotus Technology through a share subscription agreement. This investment aims to bolster the existing partnership between the two Geely ecosystem companies, fostering greater integration and alignment as they navigate the evolving automotive landscape.

Key Takeaways

• ECARX invests $23 million in Lotus Technology.
• The investment strengthens the strategic partnership and global cooperation.
• Focus on intelligence, software, and digital ecosystems in the automotive industry.
• ECARX’s technology platforms to support Lotus’s next-generation intelligent mobility.

Strategic Investment and Partnership Goals

On December 29, ECARX revealed its agreement to subscribe to 16,788,321 newly issued ordinary shares of Lotus Technology at $1.37 per share. This capital injection is designed to broaden the scope of their collaboration, reinforcing their ties and advancing a more integrated global partnership with stronger strategic alignment.

Divergent Business Trajectories

While both companies are part of the Geely ecosystem, their recent performance has differed. ECARX has demonstrated robust growth, achieving operating profitability for the first time in Q3 2025 with a 11% year-on-year revenue increase to $219.9 million. By September 2025, nearly 10 million vehicles globally were equipped with ECARX technologies.

Lotus Technology, focusing on luxury electric sports cars, faced a different market dynamic. In Q3 2025, it reported a net loss of $0.10 per share, an improvement from the previous year, but revenue saw a decline to $137 million from $255 million.

Shifting Industry Focus to Intelligence

Beyond the financial aspect, ECARX’s investment underscores the automotive industry’s significant shift towards intelligence, software, and digital ecosystems. ECARX’s global expansion strategy is showing promise, with over $2.5 billion in global order backlog and overseas contracts with European automakers.

For Lotus Technology, this capital infusion could provide enhanced access to advanced intelligent cockpit and smart driving technologies. The partnership is poised to unlock deeper collaboration in technology development, market expansion, and supply chain integration.

Future Collaboration and Vision

ECARX co-founder, chairman, and CEO Ziyu Shen stated that the investment is a natural step in their partnership’s evolution. He highlighted Lotus’s global brand recognition and growth potential, suggesting that ECARX’s Pikes computing platform and Cloudpeak software platform could provide Lotus with a future-ready technology foundation.

Lotus Technology CEO Feng Qingfeng echoed this sentiment, emphasizing ECARX as a key collaborator in redefining the intelligent cockpit. He believes deeper cooperation will accelerate innovation in next-generation cockpit ecosystems and deliver advanced AI-driven user experiences, signaling investor confidence in Lotus’s long-term value creation.

Sources

• ECARX deepens strategic ties with Lotus Technology through $23 million equity investment, Gasgoo.

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