Workhorse Enters Modular AI Infrastructure Market Through Foundational TerraPod™ Partnership with UK-Based RHAELM
The $10 million reference-unit agreement starts development, while the contemplated 150-system production order remains conditional.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Workhorse Group (WKHS) signed an agreement under which RHAELM will pay $10 million to build a TerraPod modular data center reference unit. The full-scale unit will be built at Workhorse's Union City, Indiana facility.
The companies also signed a non-binding letter of intent targeting a definitive supply agreement by December 31, 2026. The contemplated framework includes expanded engineering, milestone-based prepayments and a U.S. right of first refusal for future RHAELM projects. A contemplated initial order for 150 TerraPod systems depends on signing the supply agreement, RHAELM accepting the platform, definitive documentation and required internal approvals. Becoming a supplier to RHAELM's blueprint collaboration also requires consortium partners' consent. Workhorse believes production can begin in late 2027 or early 2028.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point$10 million Spec Unit Agreement commits RHAELM to pay Workhorse to build a full-scale TerraPod reference unit. 36% of market cap
- Moderate point. Forward-looking: it has not happened yet and may not happen.150-system initial order is contemplated under the companies' proposed production framework.
- Minor point. Forward-looking: it has not happened yet and may not happen.Milestone-based prepayments toward a first order are contemplated in the targeted supply agreement.
- Minor point. Forward-looking: it has not happened yet and may not happen.U.S. right of first refusal is contemplated for supplying modular data centers to future RHAELM projects.
- Minor point. Forward-looking: it has not happened yet and may not happen.Expanded joint engineering is contemplated under the targeted supply agreement.
2 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.Blueprint collaboration supplier role is intended, potentially providing access to RHAELM's prospective global project pipeline.
- Minor point. Forward-looking: it has not happened yet and may not happen.Late 2027 or early 2028 is when Workhorse believes TerraPod production can begin.
Negative
- Moderate pointExpansion framework is non-binding; a definitive supply agreement is targeted for December 31, 2026.
- Minor point. Forward-looking: it has not happened yet and may not happen.Initial production order requires a signed supply agreement, platform acceptance, definitive documentation and required internal approvals.
- Minor pointBlueprint collaboration supplier status remains subject to consortium partners' consent.
Details
Market Reaction – WKHS
On Oct 29, the day this news came out, the latest delayed price for WKHS is 25.88% above the previous close. Our momentum scanner has recorded 38 alerts for this stock so far that day. The latest delayed price is $3.21. Relative volume is exceptionally heavy at 75.3x the average.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
- Spec unit payment
- $10 million
- RHAELM will pay Workhorse under the Spec Unit Agreement
- Contemplated initial order
- 150 TerraPod systems
- Subject to the Supply Agreement, platform acceptance, definitive documentation and internal approvals
- Supply Agreement target
- December 31, 2026
- Targeted execution date
- Production timing
- Late 2027 or early 2028
- Workhorse's stated production timing belief
Key Terms
letter of intent financial
right of first refusal financial
behind the meter technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Initial Agreement to develop a full-scale TerraPod manufacturing spec unit
Initial Agreement to develop a full-scale TerraPod manufacturing spec unit
Non-Binding LOI to further expand the partnership, including a Supply agreement and contemplated contingent initial order for 150 TerraPod systems
WIXOM, Mich. and LONDON, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Workhorse Group, Inc. (Nasdaq: WKHS) ("Workhorse") and Rhaelm Holdings Limited ("RHAELM"), a UK-based developer of vertically integrated AI infrastructure, today announced a strategic partnership to jointly commercialize TerraPodTM Workhorse's new modular data center platform. The partnership pairs Workhorse's U.S. engineering and manufacturing capabilities with RHAELM’s global energy partnerships and AI customer relationships.
Workhorse and RHAELM have entered into a Manufacturing Spec Unit Purchase Agreement (the “Spec Unit Agreement”), under which RHAELM will pay Workhorse
Demand for AI compute is growing faster than traditional data centers can be built. TerraPod is being designed to help speed time-to-market for new data centers with factory-built, modular units that will bring compute, power distribution, cooling, communications, systems control and fire suppression together into rapidly deployable integrated systems.
TerraPod systems will be built on a production line rather than a construction site and designed to be sited on deployment-ready foundations, produced at scale and put into commercial use far faster than conventional facilities. RHAELM is working with partners in a blueprint collaboration to set reference design requirements for its modular compute offering and related standards, and through this relationship, the companies intend for TerraPod to be developed as a modular physical platform designed to meet those standards.
“As industry leaders in AI compute and infrastructure continue to develop standardized requirements, we believe the modular data center industry is approaching its ‘Model-T’ moment,” said Scott Griffith, Chief Executive Officer of Workhorse. “Our partnership announcement with RHAELM goes beyond acting as a launchpad for our TerraPod product; we believe it’s the beginning of an era of mass production of the systems that will enable rapid deployment of cost-effective, secure and highly distributed AI compute capabilities.”
Three Phase Partnership
The companies have deliberately structured the partnership in stages, with an initial commitment starting immediately and a non-binding framework laying the groundwork for further planned expansion.
Phase 1: Build the reference unit. Under the Spec Unit Agreement, Workhorse will build a TerraPod manufacturing spec unit, consistent with the standard modular data center blueprint being developed by RHAELM and its partners. The unit will serve as a physical reference for equipment fitment, service access and assembly sequence. This approach enables RHAELM and its commercial partners, equipment suppliers and prospective customers to view, interact with and refine the design before committing the capital needed to deliver final prototypes and ultimately begin production.
Phase 2: Sign the Supply Agreement. The companies also have created a framework for expansion of the relationship through a Supply Agreement that they are targeting for execution by year-end 2026. Under the contemplated framework, the Supply Agreement would allow for expanded joint engineering efforts, a structure for milestone-based prepayments toward a first order, and a U.S. right of first refusal giving Workhorse the opportunity to supply modular data center units for all future RHAELM projects in the United States.
Phase 3: Scale to production. The Letter of Intent also expresses the companies’ intention that once the Supply Agreement is signed and RHAELM accepts the co-developed platform, RHAELM would place an initial order for production of 150 TerraPod systems, subject to definitive documentation and required internal approvals. The companies also intend to have Workhorse become an official modular data center supply-chain provider to the RHAELM blueprint collaboration, subject to the consents of its consortium partners. This could give TerraPod access to RHAELM's prospective global project pipeline, serving the world’s AI builders. Workhorse believes TerraPod production can begin in late 2027 or early 2028.
“This ‘walk-before-you-run approach' is designed to streamline and accelerate time to full production, while also providing a structure that puts our teams together on initial work right now,” said Griffith. “Just as important, this structure gives us a seat at the table with RHAELM and a highly complementary set of partners as the industry standardizes modular designs. We believe the Supply Agreement we are targeting by year-end will chart the course to full scale production and give us a clear pathway to significant future commercial volume for TerraPod."
“AI’s limiting factor today isn’t ambition, it’s power and compute,” said Bradd Lewis, CEO, RHAELM. “We partner with generators that already hold committed capacity, and as standardization continues, turning that power into compute moves from the field to the factory. In Workhorse, we have the manufacturing partner to make that happen. Together, we believe we can deliver AI compute at scale, years ahead of the conventional timeline.”
ABOUT RHAELM
RHAELM converts power into compute at speed and scale, powering the potential of AI. The company partners with power generators that hold committed capacity and builds AI infrastructure behind the meter, bringing power, compute and capital together in one integrated project. The result is AI compute at scale, years ahead of the conventional timeline. Headquartered in London, RHAELM is developing projects globally.
ABOUT WORKHORSE GROUP
Headquartered in the Detroit area, Workhorse Group Inc. (Nasdaq: WKHS) is an American industrial technology company that designs, engineers, and produces the intelligent industrial machines that are the lifeblood of modern economies. From its manufacturing facility in Union City, Indiana, Workhorse applies its electrification, high-voltage systems integration, ruggedized platform manufacturing and distributed energy capabilities to its electric commercial vehicles and modular AI infrastructure products. More information is available at www.workhorse.com.
Media Relations Contacts:
Workhorse
John Williams, Chief Communications Officer
+1-206-660-5503, john.williams@workhorse.com
ICR, Inc.
workhorse@icrinc.com
Investor Relations Contact:
ir@workhorse.com
RHAELM
Ingrid Salte, Global Head of Communications
pr@rhaelm.com
FORWARD-LOOKING STATEMENTS
All statements other than statements of present or historical fact contained in this press release are “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including Workhorse’s or its management team’s current expectations, objectives, beliefs, intentions or strategies regarding the future. These statements may include, but are not limited to, statements concerning the development, production readiness and potential commercialization of the TerraPod modular data center platform; the development, completion and acceptance of the manufacturing spec unit and the payment of consideration by RHAELM under the Spec Unit Agreement; the negotiation, execution and timing of a definitive Supply Agreement; the contemplated contingent initial order for 150 TerraPod systems, any first-order prepayment and the U.S. right of first refusal; Workhorse's potential admission to the blueprint collaboration as a supply-chain provider; anticipated production timing and volumes; and potential future commercial production and deployment of modular data center systems. Readers are cautioned not to put undue reliance on forward-looking statements and Workhorse cautions you that these forward-looking statements are subject to numerous risks and uncertainties, many of which are difficult to predict and many of which are beyond the control of Workhorse, including the following factors: the Letter of Intent described in this press release is non-binding, and there can be no assurance that a definitive Supply Agreement will be entered into; the contemplated 150-unit contingent initial order is conditioned on RHAELM’s acceptance of the platform, definitive documentation and required internal approvals by RHAELM and there is no guarantee that such conditions will be met, that the order will be placed or that it will be placed on terms consistent with Workhorse’s expectations; Workhorse may not be able to successfully complete the manufacturing spec unit and/or the TerraPod systems, secure reliable sources of critical components, or retain or hire personnel necessary to support production of modular AI infrastructure products; changing technologies, regulatory requirements and competitive pressures may negatively affect the anticipated production or deployment of the systems; market adoption and customer demand for the TerraPod systems may not materialize as expected; the costs involved in developing and manufacturing the manufacturing spec unit and/or the TerraPod systems may exceed Workhorse’s expectations and Workhorse may be unable to obtain sufficient funds from commercial partners or investors to offset such costs; and risks relating to macroeconomic conditions, global events, and geopolitical events, including but not limited to inflationary pressures, supply chain interruptions and changes in market conditions, and Workhorse’s ability to manage these risks and uncertainties. Additional information concerning these and other factors that may impact the statements discussed in this press release and other factors related more broadly related to Workhorse’s business, can be found in Workhorse's filings with the U.S. Securities and Exchange Commission, including its most recent reports on Form 10-K and Form 10-Q, all of which are available on the SEC’s website at www.sec.gov. Forward-looking statements are not guarantees of future performance, speak only as of the date they are made, and Workhorse undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, the occurrence of future events, or otherwise, except as required by law.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8de0b913-6ad7-44c2-a6e2-58a486c116ee
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What does Workhorse's $10 million TerraPod agreement with RHAELM cover?
RHAELM will pay Workhorse $10 million to build a full-scale TerraPod manufacturing reference unit at its Union City, Indiana facility. This agreement covers the reference unit, rather than the contemplated production order for 150 systems.
Is RHAELM's proposed order for 150 Workhorse TerraPod systems confirmed?
The 150-system order is contemplated, not confirmed. It depends on signing the supply agreement, RHAELM accepting the co-developed platform, definitive documentation and required internal approvals. The companies are targeting execution of the supply agreement by December 31, 2026.
How will Workhorse's TerraPod reference unit be used before production?
The reference unit will let RHAELM and its partners assess equipment fitment, service access and assembly sequence. Equipment suppliers and prospective customers can also inspect and refine the design before committing capital for final prototypes and eventual production.