Mullen Automotive (NASDAQ: MULN) has taken a significant step towards expanding its U.S. battery manufacturing capabilities by submitting an updated proposal to the U.S. Department of Energy (DOE). The company’s plan focuses on enhancing production at its facilities in Mishawaka, Indiana, and Fullerton, California, with a total investment of $55 million, including $12 million already invested and an additional $43 million planned.
The proposal seeks to leverage the DOE’s program funded by the Bipartisan Infrastructure Law, which aims to boost domestic clean energy production. Mullen is requesting $55 million in matching funds from the DOE to support its ambitious expansion plans. This move aligns with the government’s goals to strengthen the U.S. position in advanced battery manufacturing and reduce dependence on foreign suppliers.
At the heart of Mullen’s strategy is the transformation of its Mishawaka facility, a former GM Hummer plant, into a high-volume battery production center. The company plans to upgrade this site to achieve an annual capacity of 108,000 battery systems. This significant increase in production capability positions Mullen to meet the growing demand for electric vehicle batteries in the United States.
Meanwhile, the Fullerton facility will be dedicated to research, development, and prototype production. This dual-facility approach allows Mullen to balance large-scale manufacturing with ongoing innovation, ensuring the company remains at the forefront of battery technology advancements.
The timing of this expansion is crucial, with Mullen targeting mid-2025 for the delivery of its first production units. The company plans to launch additional production lines in subsequent years, indicating a long-term commitment to scaling its battery manufacturing operations.
Mullen’s initiative comes at a critical time for the U.S. automotive and energy sectors. As the country seeks to transition towards cleaner energy sources and electric vehicles, domestic battery production has become a key priority. By investing in U.S.-based manufacturing, Mullen is not only positioning itself as a major player in the EV battery market but also contributing to national goals of energy independence and job creation in the clean energy sector.
The company’s strategic acquisitions and infrastructure investments have laid the groundwork for this expansion. Mullen’s approach demonstrates a comprehensive strategy that encompasses not just manufacturing but also research and development, ensuring a pipeline of innovative battery technologies.
This move by Mullen Automotive could have far-reaching implications for the U.S. electric vehicle industry. Increased domestic battery production capacity could lead to reduced costs for EVs, making them more accessible to American consumers. It also has the potential to strengthen the U.S. supply chain for critical components, reducing vulnerability to international supply disruptions.
As the automotive industry continues its shift towards electrification, Mullen’s expanded battery manufacturing capabilities could position the company as a key supplier to other automakers, potentially opening up new revenue streams beyond its own vehicle production.
The success of Mullen’s proposal and subsequent implementation will be closely watched by industry observers and policymakers alike. If successful, it could serve as a model for other companies looking to expand domestic manufacturing in critical clean energy technologies, further accelerating the U.S. transition to a sustainable transportation future.
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