Mullen Ramping Up for Start of US Battery Production

Rhea-AI Summary

Mullen Automotive has provided an update on its Fullerton, California battery operations. The company has installed three battery production lines at the facility and plans to add two more lines by early 2025. The current setup includes a high-volume standard battery line, a precision R&D line for standard chemistry, and a solid-state polymer R&D line. Additional installations planned include a high-volume standard chemistry line in December 2024 and a fully automated wire bonding line by February 2025. Production is anticipated to begin in mid-2025, supporting Mullen's commitment to domestic battery manufacturing and reducing foreign dependency.

Positive

• Establishing domestic battery production capability
• Installation of three operational battery production lines
• Planned expansion with two additional production lines by early 2025
• Diversified production capabilities including standard and solid-state technologies

Negative

• Production start not until mid-2025, indicating significant wait time for revenue generation
• Substantial capital investment required for production line installations

Insights

Tech Manufacturing Expert

The battery production update from Mullen represents incremental progress but faces significant challenges. The installation of three battery lines with plans for two more shows basic infrastructure development, but the mid-2025 production timeline indicates a lengthy wait before potential revenue generation. The facility's diverse capabilities - including standard chemistry, R&D and solid-state polymer lines - demonstrate technical ambition, but without proven production metrics or customer commitments, the impact remains speculative.

The focus on domestic battery production aligns with current market trends and potential government incentives, but Mullen's micro-cap status ($16.4M) raises serious concerns about funding the capital-intensive battery manufacturing operation through 2025. The company will need substantial capital to maintain operations and complete the planned expansions, making this announcement more aspirational than immediately impactful for investors.

Anticipated start of production to begin in mid-2025

To date, Mullen has installed three battery lines at its Fullerton facility and planned for an additional two lines

• High volume standard battery chemistry line
• High precision, low volume standard chemistry R&D line
• A high precision, low volume solid-state polymer R&D line
• An additional high volume standard chemistry battery line is anticipated to be installed in December 2024
• An additional high volume, fully automated wire bonding line to be installed by February 2025 for use with multiple chemistries

BREA, Calif., Nov. 21, 2024 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric vehicle (“EV”) manufacturer, announces today an update on the Company’s Fullerton, California, battery operations. The Fullerton facility is dedicated to producing next-generation, American-made, battery packs and modules, a critical component to the Company’s commitment to zero emissions and to reducing reliance on key battery components imported from foreign countries. Photos from Mullen’s Fullerton battery facility can be found at MullenUSA.com.

“A key mission for our company is to transition to American-made battery components,” said David Michery, CEO and chairman of Mullen Automotive. “Our focus is on producing batteries and modules made right here in the USA.”

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. In September 2023, Mullen received IRS approval for federal EV tax credits on its commercial vehicles with a Qualified Manufacturer designation that offers eligible customers up to $7,500 per vehicle. 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. Recently, CARB issued HVIP approval on the Mullen THREE, Class 3 EV truck, providing up to $45,000 cash voucher at time of vehicle purchase. The Company has also recently expanded its commercial dealer network to seven dealers with the addition of Papé Kenworth. Other previously announced dealers include 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 Midwest, West Coast, Pacific Northwest, New England and Mid-Atlantic markets. The Company has also announced Foreign Trade Zone (“FTZ”) status approval for its Tunica, Mississippi, commercial vehicle manufacturing center. FTZ approval provides a number of benefits, including deferment of duties owed and elimination of duties on exported vehicles.

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, whether the anticipated start of battery production date will be achieved; if and when the two additional battery lines planned for the Fullerton Facility will materialize; and whether anticipated timing for installation of the high volume standard chemistry battery line and high volume automated wire bonding line will be realized. 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:
InvestorBrandNetwork (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com

Attachment

• Mullen’s Focus is on American-Made Battery Production

FAQ

When will Mullen (MULN) start battery production in the US?

Mullen plans to begin battery production at its Fullerton facility in mid-2025.

How many battery production lines does Mullen (MULN) have installed?

Mullen has installed three battery lines at its Fullerton facility, with plans for two additional lines by early 2025.

What types of battery lines does Mullen (MULN) have at its Fullerton facility?

Mullen has a high-volume standard battery line, a precision R&D line for standard chemistry, and a solid-state polymer R&D line.

Where is Mullen's (MULN) battery production facility located?

Mullen's battery production facility is located in Fullerton, California.