Mullen Automotive (NASDAQ: MULN), a California-based electric vehicle (EV) manufacturer, has taken a significant step forward in its global expansion by initiating the first shipment of vehicles to Volt Mobility in the United Arab Emirates (UAE). This shipment marks the beginning of a $210 million purchase contract between the two companies, representing a major milestone for Mullen’s commercial EV business and its push into international markets.
The agreement between Mullen and Volt Mobility involves the delivery of 3,000 Mullen Class 1 and Class 3 EV cargo vans and trucks over a 16-month period. Volt Mobility, a UAE-based company, plans to lease these vehicles to prominent corporate customers in the region, including global logistics giants UPS, DHL, and FedEx. This partnership not only signifies Mullen’s entry into the Middle Eastern market but also highlights the growing demand for sustainable transportation solutions in the logistics and delivery sectors.
David Michery, CEO and chair of Mullen Automotive, expressed enthusiasm about the initial shipment, stating, ‘We’re happy to announce we have shipped the first vehicles under our contract with Volt.’ Michery also revealed that a team from Mullen will be present in Dubai to support the launch with Volt Mobility, underscoring the company’s commitment to ensuring a smooth rollout of its vehicles in the new market.
This development comes on the heels of Mullen’s expansion in Europe, further solidifying the company’s position as a growing player in the global EV market. The successful execution of this contract could potentially open doors for Mullen in other international markets, particularly in regions seeking to transition their transportation fleets to more environmentally friendly options.
Mullen’s ability to secure and begin fulfilling such a substantial contract is particularly noteworthy given the company’s recent achievements. In August 2023, Mullen commenced commercial vehicle production at its Tunica, Mississippi plant, a 120,000-square-foot facility. This was followed by the receipt of IRS approval for federal EV tax credits in September 2023, which allows eligible customers to benefit from up to $7,500 per vehicle.
Furthermore, both the Mullen One, a Class 1 EV cargo van, and Mullen Three, a Class 3 EV cab chassis truck, have received certification from the California Air Resource Board (CARB) and the EPA, making them available for sale in the United States. The Mullen Three has also been approved for the Hybrid and Zero-Emissions Truck and Bus Voucher Incentive Project (HVIP), offering up to a $45,000 cash voucher at the time of vehicle purchase, further enhancing its appeal to potential customers.
The company has also been expanding its commercial dealer network in key U.S. markets and recently received Foreign Trade Zone (FTZ) status approval for its Tunica, Mississippi manufacturing center. The FTZ status provides several benefits, including the deferment of duties owed and the elimination of duties on exported vehicles, which could significantly enhance Mullen’s competitiveness in international markets.
As Mullen Automotive continues to execute its global expansion strategy, the successful initiation of this contract with Volt Mobility serves as a testament to the company’s growing capabilities and the increasing global demand for electric commercial vehicles. The partnership not only represents a significant revenue opportunity for Mullen but also contributes to the broader adoption of sustainable transportation solutions in the Middle East, a region traditionally associated with fossil fuel-based economies.
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