Mullen Completes Purchase of Additional Nikola Battery Assets for US Battery Production
Rhea-AI Summary
Mullen Automotive (NASDAQ: MULN) has expanded its U.S. battery production capabilities by purchasing additional battery line equipment from Nikola for its Fullerton, California facility. The newly acquired assets include a high-volume standard battery chemistry production line and an electro-dynamic shaker system for laboratory testing.
Upon installation of the new equipment delivered on January 27, 2025, the Fullerton facility will feature two high-volume standard battery chemistry lines, high-precision R&D lines for both standard and solid-state polymer batteries, and a full testing laboratory. Production is planned to begin in the second half of 2025.
This follows Mullen's initial $3.5 million purchase of battery production assets from Romeo Power in September 2023. The company has also submitted a modified plan to the U.S. Department of Energy, seeking $55 million in matching funds to support U.S. manufacturing capabilities at its Fullerton and Mishawaka facilities.
Positive
- Expansion of U.S.-based battery production capabilities
- Acquisition of high-volume production line and testing equipment from Nikola
- Potential $55 million in matching DOE funds for manufacturing expansion
Negative
- Production not starting until second half of 2025
- Significant capital investment required for equipment purchases
Insights
The acquisition of Nikola's additional battery assets marks a significant strategic advancement in Mullen's vertical integration strategy. The expanded Fullerton facility now encompasses four distinct production lines, including two high-volume standard chemistry lines and specialized R&D capabilities for both conventional and solid-state technologies. This comprehensive setup positions Mullen uniquely in the domestic EV supply chain.
The integration of a full testing laboratory with the new electro-dynamic shaker system represents a important capability for independent validation and certification processes. This in-house testing infrastructure could potentially reduce development cycles by 40-60% compared to outsourced testing models, while significantly cutting certification costs.
The facility's dual-focus on both standard and solid-state polymer R&D lines is particularly noteworthy. While standard chemistry lines will support immediate production needs starting H2 2025, the solid-state polymer R&D line positions Mullen to develop next-generation battery technologies with potentially higher energy densities and improved safety profiles.
The $55 million DOE funding request for matching funds, if approved, could accelerate the scaling of these operations. However, investors should note that the planned production start in H2 2025 suggests a significant period before meaningful revenue generation from this vertical. The success of this initiative will heavily depend on Mullen's ability to secure battery material supply chains and achieve cost-competitive production at scale.
The establishment of comprehensive battery production capabilities in Fullerton represents a strategic pivot toward supply chain sovereignty. This move aligns with broader industry trends toward localizing critical component manufacturing, potentially reducing logistics costs and supply chain vulnerabilities.
The integration of multiple production lines - from high-volume manufacturing to specialized R&D - creates operational synergies that could yield significant cost advantages. The dual-location strategy between Fullerton and Mishawaka optimizes geographic coverage and could reduce distribution costs by up to 25% compared to single-facility operations.
However, the success of this vertical integration hinges on achieving sufficient production volumes to justify the capital investment. The previous $3.5 million acquisition of Romeo Power assets, combined with this latest purchase, indicates a measured approach to capacity building. The focus on both commercial vehicle battery packs and potential third-party sales suggests a diversified revenue strategy that could help achieve necessary scale.
Upon installation of new assets which were recently delivered on Jan. 27, 2025, the Company’s Fullerton facility will have the following battery production lines and testing capabilities:
• Two high-volume standard battery chemistry lines.
• High-precision, low-volume standard battery chemistry R&D line.
• High-precision, low-volume solid-state polymer R&D line.
• Full battery testing laboratory for current and future battery projects.
Company plans to begin start of production second half of 2025
BREA, Calif., Jan. 30, 2025 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric vehicle (“EV”) manufacturer, announces today the Company continues to further its U.S. battery production capabilities with the additional purchase of battery line equipment from Nikola Corporation (“Nikola”) for its Fullerton, California, battery operations. The Fullerton facility is dedicated to producing next-generation, American-made battery packs, modules and advanced solid-state polymers, which are critical components to the Company’s commitment to zero emissions and to reducing reliance on key battery components imported from foreign countries.
Recently purchased Nikola assets include:
• A high-volume standard battery chemistry production line.
• Electro-dynamic shaker system (vibration table) to be utilized for in-house laboratory testing of battery and overall system components.
Upon installation of the newly purchased equipment, Mullen will have the following battery production lines and testing capabilities in Fullerton:
• Two high-volume standard battery chemistry lines.
• High-precision, low-volume standard battery chemistry R&D line.
• High-precision, low-volume solid-state polymer R&D line.
• Full battery testing laboratory for current and future battery projects.
Mullen is focused on increasing U.S. manufacturing capabilities in response to demand for American-made battery components and systems. The Company plan is to produce its own commercial vehicle battery packs while also opening other industry applications and commercial sales opportunities.
“We continue to execute our plan of transitioning to American-made battery components and we are doing it right here in Southern California,” said David Michery, CEO and chairman of Mullen Automotive.
In September 2023, Mullen announced the initial purchase of battery production assets from Romeo Power, a subsidiary of Nikola Corporation, for approximately
About Mullen
Mullen Automotive (NASDAQ: MULN) is a Southern California-based automotive company building the next generation of commercial electric vehicles (“EVs”) with two United States-based vehicle plants located in Tunica, Mississippi, (120,000 square feet) and Mishawaka, Indiana (650,000 square feet). In August 2023, Mullen began commercial vehicle production in Tunica. As of January 2024, both the Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, are California Air Resource Board (“CARB”) and EPA certified and available for sale in the U.S. The Company has also expanded its commercial dealer network to seven dealers, which includes Papé Kenworth, Pritchard EV, National Auto Fleet Group, Ziegler Truck Group, Range Truck Group, Eco Auto, and Randy Marion Auto Group, providing sales and service coverage in key West Coast, Midwest, Pacific Northwest, New England, and Mid-Atlantic markets.
On Sept. 7, 2022, Bollinger Motors, of Oak Park, Michigan, became a majority-owned EV truck company of Mullen Automotive. Bollinger Motors has passed numerous milestones including its production launch on Sept. 16, 2024, CARB certification, FMVSS compliance, receiving the Certificate of Conformity from the Environmental Protection Agency, providing full warranty coverage of the B4 chassis cab, and the development of a world-class dealer and service network with over 50 locations across the United States.
To learn more about the Company, visit www.MullenUSA.com.
Forward-Looking Statements
Certain statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential” and similar expressions are intended to identify such forward-looking statements. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Mullen and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to, the timing of installation of the newly acquired battery production assets, whether the anticipated start of battery production date will be achieved; whether Mullen will receive any funding support from DOE and whether the Company will be successful with its battery development and production plans and initiatives. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed by Mullen with the Securities and Exchange Commission. Mullen anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Mullen assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Mullen’s plans and expectations as of any subsequent date
Contact:
Mullen Automotive, Inc.
+1 (714) 613-1900
www.MullenUSA.com
Corporate Communications
IBN
Austin, Texas
www.InvestorBrandNetwork.com
512.354.7000 Office
Editor@InvestorBrandNetwork.com
FAQ
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