Mullen Automotive Inc., an emerging electric vehicle (EV) manufacturer, has acquired battery pack production assets from Romeo Power. The assets have been secured for an approximate amount of $3.5 million.
Why It Matters
The acquisition solidifies Mullen’s standing in the EV market, granting them internal capabilities to produce battery packs and modules. By doing so, Mullen decreases its dependence on third-party suppliers, mitigating risks tied to supply chain disruptions and component scarcities. This proactive move underscores the company’s commitment to augment its EV battery production proficiencies.
Key Points
- Mullen Automotive’s purchase encompasses equipment, inventory, and intellectual property tailored for robust EV battery pack and module production.
- The obtained Romeo Power assets feature production lines dedicated to EV pack assembly, precision R&D module, and pack development, accompanied by the requisite inventory for module and vehicle battery pack creation.
- The acquisition includes tools for battery testing and validation, computer numerical control (CNC) machinery for battery pack and module enclosure production, and all corresponding furniture and fixtures.
- These Romeo assets will find their new home at Mullen’s high-voltage facility in Monrovia, California. This strategic transfer will allow Mullen to amalgamate the assets into its pre-existing setup, optimizing costs and amplifying its current battery pack production capabilities.
Bottom Line
David Michery, CEO and chairman of Mullen Automotive, emphasized this acquisition’s significance. He remarked, “The Romeo asset acquisition aligns perfectly with our outlined battery pack production strategy and prior declarations regarding our high-voltage establishment in Monrovia. Ultimately, this purchase significantly bolsters our capability to produce battery packs, spotlighting our dedication to innovation right here in California and the U.S.”
