Mullen Automotive Advances American-Made Battery Production at Fullerton Facility

Mullen Automotive (NASDAQ: MULN), a prominent player in the electric vehicle (EV) manufacturing sector, has announced progress in its efforts to produce advanced battery packs and modules at its Fullerton, California facility. This development underscores the company's dedication to fostering domestic production capabilities and advancing sustainable transportation solutions.

The focus on American-made battery technology aligns with Mullen's broader mission to transition away from imported components, a strategy that could have far-reaching implications for the U.S. automotive industry and energy independence. CEO and Chairman David Michery emphasized that this initiative is integral to the company's sustainability goals, highlighting the importance of localized production in the evolving EV landscape.

Mullen's commitment to domestic manufacturing extends beyond its battery production efforts. The company operates two U.S.-based vehicle plants: a 120,000-square-foot facility in Tunica, Mississippi, and a 650,000-square-foot plant in Mishawaka, Indiana. These facilities position Mullen to respond rapidly to market demands and maintain quality control over its production processes.

The company's progress in battery technology comes at a crucial time for the EV industry. With increasing pressure to reduce carbon emissions and enhance energy efficiency, the development of next-generation battery packs could significantly impact the performance and affordability of electric vehicles. By focusing on domestic production, Mullen is not only aiming to improve its supply chain resilience but also potentially creating new job opportunities in the high-tech manufacturing sector.

Mullen's efforts have already yielded tangible results in the commercial EV market. The company began commercial vehicle production in Tunica in August 2023 and has since received IRS approval for federal EV tax credits on its commercial vehicles. This Qualified Manufacturer designation offers eligible customers up to $7,500 per vehicle, potentially accelerating the adoption of Mullen's EVs in the commercial sector.

The company's product line includes the Mullen ONE, a Class 1 EV cargo van, and the Mullen THREE, a Class 3 EV cab chassis truck. Both vehicles have received certification from the California Air Resource Board (CARB) and the EPA, making them available for sale across the United States. The CARB-issued HVIP approval for the Mullen THREE provides an additional incentive, offering up to a $45,000 cash voucher at the time of vehicle purchase.

Mullen's strategic expansion of its commercial dealer network to seven dealers, including the recent addition of Papé Kenworth, demonstrates the company's commitment to establishing a strong market presence. This network, which includes dealers such as Pritchard EV and National Auto Fleet Group, provides sales and service coverage in key markets across the Midwest, West Coast, Pacific Northwest, New England, and Mid-Atlantic regions.

The company's recent Foreign Trade Zone (FTZ) status approval for its Tunica, Mississippi commercial vehicle manufacturing center further enhances its competitive position. FTZ approval offers benefits such as deferment of duties owed and elimination of duties on exported vehicles, potentially improving Mullen's cost structure and international competitiveness.

As the automotive industry continues its shift towards electrification, Mullen's focus on domestic battery production and commercial EV manufacturing positions the company as a notable player in the transition to sustainable transportation. The success of these initiatives could have significant implications for the U.S. automotive supply chain, potentially reducing reliance on international suppliers and fostering innovation in battery technology.