BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), an emerging electric vehicle manufacturer with a current market capitalization of $11.65 million, has updated its strategy for battery production in the United States. According to InvestingPro data, the company, which currently maintains a WEAK financial health score, submitted a revised plan to the U.S. Department of Energy (DOE) on Monday, aiming to incorporate facilities in Mishawaka, Indiana, and Fullerton, California, into its battery and pack manufacturing operations.
Mullen Automotive has committed significant resources, investing $12 million to date in battery development and manufacturing. An additional $43 million is earmarked to support the expansion of U.S. production capabilities. With a current ratio of 0.53 and negative EBITDA of $267.71 million for the last twelve months, the company seeks $55 million in matching funds from the DOE to bolster its manufacturing capacities. InvestingPro analysis reveals 15+ additional key metrics and insights about Mullen's financial position.
The company's strategy includes strategic acquisitions, such as assets from Romeo Power and Nikola (NASDAQ:NKLA), to enhance battery pack production. The Mishawaka facility, previously home to GM Hummer and AM General manufacturing, is set to become the primary site for Mullen's battery production lines, with an anticipated capacity of 108,000 battery systems, or 1 gigawatt-hour, per year.
Mullen's first production units are scheduled for delivery in late mid-2025, with plans to launch two additional production lines in the following years. High-volume production will be relocated to Mishawaka, while the Fullerton location will focus on research and development and the production of low-volume, solid-state battery prototypes. The company is also considering a low-voltage production line for 24-volt and 48-volt battery modules.
This initiative aligns with the DOE's goals to support clean energy and advanced manufacturing in the U.S. and is part of a broader federal effort to stimulate domestic production of advanced batteries and materials. The DOE program, established on November 13, 2023, through the Bipartisan Infrastructure Law, offers grants to ensure a viable battery materials processing industry in the United States.
Mullen's recent developments in battery manufacturing aim to position the company as a leader in the field and contribute to the nation's clean energy objectives. This news is based on a press release statement from Mullen Automotive.
In other recent news, Mullen Automotive has reported significant growth in EV sales and a substantial decrease in monthly expenses. The company generated sales of $5.5 million from selling 100 Class 1 and Class 3 EV cargo vans and trucks. Mullen Automotive also managed to reduce its monthly cash burn rate from $16.8 million in August 2024 to $5.3 million in October and November 2024.
The company has also secured additional financing of $4.4 million through the issuance of senior secured convertible notes and related warrants, which is expected to bolster the company's financial position. Mullen Automotive has also settled its outstanding liabilities totaling over $20 million by issuing common stock to creditors, further strengthening its financial position.
The company has received substantial orders for its electric commercial vehicles, with Associated Coffee ordering 10 Class 3 EV cab chassis trucks and TEC Equipment placing a repeat order for seven Bollinger B4 all-electric trucks. Mullen Automotive's subsidiary, Bollinger Motors, has also expanded its national dealer network with the addition of Bergey’s Truck Centers and Broadway Ford (NYSE:F) Truck Center, extending its reach into the mid-Atlantic and Midwest regions respectively.
Mullen Automotive has also announced strategic partnerships with Emerald Transportation Solutions and the National Auto Fleet Group. The partnership with Emerald aims to develop a refrigerated upfit for the Mullen THREE, a Class 3 all-electric truck. The collaboration with the National Auto Fleet Group is expected to distribute Bollinger B4 electric commercial trucks to government agencies. These are the recent developments from Mullen Automotive.
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