Electric-vehicle startup Mullen Automotive gained court approval last week to buy an Indiana manufacturing facility, inventory of EVs, and all intellectual property from now-defunct Electric Last Mile Solutions Inc. (ELMS).
The $240 million cash purchase allows Mullen the capability to build up to 50,000 EVs annually. The ELMS asset acquisition and the recent acquisition of the majority ownership of Bollinger Motors give Mullen the ability to integrate Bollinger’s vehicle platforms, B1 and B2, along with Mullen’s FIVE and FIVE RS platforms into an already existing and capable high-volume manufacturing facility. As a result, this will accelerate the launch of the Bollinger B1 and B2 retail vehicles by 12-plus months.
The Mishawaka, IN factory that forms part of the company’s acquisition previously produced General Motors Hummer H2 SUV and SUT and also subsequently contract manufactured the Mercedes-Benz R-Class vehicle. Manufacturing optimization will include moving the Mullen FIVE EV Crossover production to the Mishawaka Factory from the Tunica, MS facility. Mullen FIVE production is planned to begin production in 2024. Tunica will now become the Commercial Manufacturing Center and capitalize to produce all Mullen and Bollinger Class 1 to 6 commercial vehicles.
With the additional Manufacturing capacity, total production volumes are expected to exceed Mullen’s previous business plan projections. The commercial portfolio is expected to increase by over 50% with the addition of the ELMS assets, and the retail portfolio is expected to more than double with the addition of Bollinger vehicles and the manufacturing capacity of Mishawaka.
The company’s majority ownership acquisition of Bollinger Motors was closed in August 2022 with a combination of stock and cash. The ELMS acquisition will be completed as an all-cash purchase.
