Luminar To Supply Laser Lidar Sensors, Software For SAIC Motor’s Electric Cars

Laser lidar startup Luminar, founded and led by the youngest self-made billionaire tracked by Forbes, will supply high-tech sensors and software to Chinese auto giant SAIC Motor Corp. for its new line of electric R brand vehicles. Vehicles using the Silicon Valley company’s tech are to be on the road next year and able to drive autonomously on the highway. 

Luminar’s Iris lidar will be integrated into the roofs of R brand vehicles and its Sentinel software, which enables Highway Autonomy and automated safety capabilities in urban driving, will also be used. The companies say their partnership should deliver China’s first autonomous production vehicles. Luminar will also establish an office in China to support the venture. The companies didn’t provide financial details of the supply deal. 

“This is really our first foray into China–and it won’t be the last,” Luminar CEO Austin Russell, 26, tells Forbes. “From a commercial standpoint, this is definitely the most significant event we’ve had in a year since Volvo.” 

Luminar’s SAIC deal, following its May 2020 plan to supply sensors and software for automated passenger vehicles that Volvo Cars will market in about two years and production programs with Daimler Trucks and Intel’s Mobileye, improve the odds the young Palo Alto, California tech company can begin generating meaningful revenue from next year. Nasdaq-listed Luminar will provide additional details about its operations and orders from automakers when it reports fourth-quarter results later today. 

Lidar is a critical technology that helps self-driving vehicles “see” their surroundings in 3D, in daylight or at night. In contrast to early industry leader Velodyne, which uses multiple lasers in a spinning unit to create detailed “pointcloud” maps, Luminar’s approach is a lower-cost single laser beam system, which it says requires less energy to operate. Its sensors work as a primary component of the hardware for self-driving vehicles that includes digital cameras, radar and computing system. Luminar says its Iris device detects objects 250 meters ahead of a vehicle traveling at highway speed, and will cost between $1000 and $500, depending on production volume.

Russell said the SAIC deal will have a “meaningful” impact on Luminar’s revenue, though he declined to provide details ahead of the company’s quarterly results announcement, scheduled for 5 p.m. New York time on March 18.

“Our new R brand line of vehicles will combine the best technology with luxury and comfort, and autonomous capabilities are central to that vision,” SAIC Motor Vice President Yang Xiaodong said. “The only autonomous vehicle company we seriously considered was Luminar–they are in a league of their own in lidar technology and software, uniquely enabling us to achieve our vision in series production.”

Lidar units for both Luminar’s SAIC and Volvo Cars projects will be produced at a contract facility the company is working with in Mexico, Russell said. He declined to identify the manufacturer.

Forbes estimates Russell’s net worth at $2.9 billion as of March 17, based on his ownership stake in Luminar.

Luminar shares, which fell 1.6% to $27.46 on Wednesday, were up about 2% before the start of regular trading Thursday.