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Mullen Submits Updated Plan to DOE for Grant Funding Opportunity in US Battery Materials Processing, Requesting $55M in Funding
MULNNet Element(MULN) GlobeNewswire·2024-12-19 14:25

Mullen Automotive's Battery Production Strategy - Mullen Automotive has submitted a modified plan to the DOE for US-based battery and pack production, incorporating facilities in Mishawaka, Indiana, and Fullerton, California [1] - The company is transitioning to manufacturing and assembly of high-voltage and low-voltage battery systems in the United States [1] - Mullen has invested 12milliontodateinbatteryandpackdevelopmentandmanufacturing,withplanstoinvestanadditional12 million to date in battery and pack development and manufacturing, with plans to invest an additional 43 million [2] - The company is seeking 55millioninmatchingDOEfundstosupportUSmanufacturingcapabilitiesandexpandproductioninresponsetoglobaldemand[2]StrategicInvestmentsandProductionPlans−Mullenhasmadestrategicacquisitions,includingassetsfromRomeoPowerandNikolaforbatterypackproduction,andkeyinfrastructureinvestmentstoincreasespeedtomarket[3]−Thefirstproductionunitsareplannedfordeliveryinmid−2025,withtwoadditionalproductionlinesscheduledtolaunchineachofthenexttwoyears[3]−TheMishawakafacilitywillbethebaseformultiplebatteryproductionlines,withacapacityof108,000batterysystemsor1gigawatt−hourperyear[5]−TheFullertonfacilitywillfocusonresearchanddevelopmentaswellaslow−volume,solid−stateprototypeproduction[4]GovernmentSupportandIndustryContext−TheDOEprogram,establishedonNov13,2023,providesupto55 million in matching DOE funds to support US manufacturing capabilities and expand production in response to global demand [2] Strategic Investments and Production Plans - Mullen has made strategic acquisitions, including assets from Romeo Power and Nikola for battery pack production, and key infrastructure investments to increase speed to market [3] - The first production units are planned for delivery in mid-2025, with two additional production lines scheduled to launch in each of the next two years [3] - The Mishawaka facility will be the base for multiple battery production lines, with a capacity of 108,000 battery systems or 1 gigawatt-hour per year [5] - The Fullerton facility will focus on research and development as well as low-volume, solid-state prototype production [4] Government Support and Industry Context - The DOE program, established on Nov 13, 2023, provides up to 3.5 billion from the Bipartisan Infrastructure Law to boost domestic production of advanced batteries and battery materials [6] - Mullen's CEO emphasized the company's focus on bringing battery and pack production to the USA [7] Company Overview and Commercial EV Production - Mullen Automotive is a Southern California-based automotive company building the next generation of commercial electric vehicles [8] - The company has two US-based vehicle plants in Tunica, Mississippi (120,000 square feet) and Mishawaka, Indiana (650,000 square feet) [8] - Commercial vehicle production began in Tunica in August 2023, and the company received IRS approval for federal EV tax credits in September 2023 [8] - The Mullen ONE (Class 1 EV cargo van) and Mullen THREE (Class 3 EV cab chassis truck) are CARB and EPA certified and available for sale in the US [9] - The company has expanded its commercial dealer network to seven dealers, providing sales and service coverage in key US markets [9]