Mullen Automotive (NASDAQ: MULN), an emerging electric vehicle (EV) manufacturer, has announced a substantial contract valued at approximately $210 million with Volt Mobility, a leading commercial leasing company based in the United Arab Emirates (UAE). This agreement will see Volt Mobility acquiring 3,000 Class 1 and Class 3 EV cargo vans and trucks from Mullen over a 16-month period.
According to the terms of the agreement, Mullen will receive an initial deposit of $3 million within the next 60 days and subsequent payments as the vehicles are delivered. Shipments of the first vehicles are set to commence immediately. Over the course of the agreement, Mullen anticipates recognizing around $210 million in revenue.
Volt Mobility plans to lease the acquired EVs to its corporate clients across the Middle East and the Gulf Cooperation Council (GCC) region, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE. This strategic move is expected to significantly impact transportation and logistics in the region, providing more sustainable and efficient solutions for businesses.
David Michery, CEO and chairman of Mullen Automotive, remarked on the significance of the deal, stating, "Volt is reshaping the way people and businesses move across the UAE and GCC. This landmark agreement provides Mullen with exposure to local global transportation companies and the opportunity for utilizing Mullen EVs across the UAE and other areas of the Middle East."
This agreement not only marks a significant milestone for Mullen Automotive but also signifies the growing demand for electric vehicles in the Middle East. As countries in the region continue to invest in sustainable technologies and infrastructure, partnerships like this highlight the critical role EV manufacturers will play in the future of transportation.
Mullen Automotive, based in Southern California, is dedicated to building the next generation of commercial EVs, with production facilities in Tunica, Mississippi, and Mishawaka, Indiana. 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, offering eligible customers up to $7,500 per vehicle. Additionally, both the Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, are California Air Resource Board (CARB) and EPA certified and are available for sale in the U.S.
This agreement with Volt Mobility is poised to enhance Mullen's presence in the global market, particularly in regions that are rapidly adopting green technologies. The successful execution of this contract could pave the way for future deals and expansions, solidifying Mullen's position as a key player in the EV industry.
