Mullen Automotive (NASDAQ: MULN), an electric vehicle manufacturer, is making significant progress in its efforts to produce next-generation battery packs and modules domestically at its Fullerton, California facility. This initiative marks a crucial step in the company's commitment to zero emissions and reducing dependence on imported battery components. CEO and Chairman David Michery emphasized Mullen's mission to transition to American-made battery technology as part of its broader sustainability goals. This move is particularly noteworthy in the context of the growing electric vehicle market and the increasing demand for sustainable transportation solutions.
The focus on domestic battery production aligns with Mullen's overall strategy of establishing a strong presence in the U.S. electric vehicle market. The company has been expanding its operations, with two U.S.-based vehicle plants in Tunica, Mississippi, and Mishawaka, Indiana. These facilities, spanning 120,000 and 650,000 square feet respectively, underscore Mullen's commitment to American manufacturing. In a significant development, Mullen began commercial vehicle production in Tunica in August 2023. The company's progress was further bolstered in September 2023 when it 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 making Mullen's electric vehicles more accessible to a broader market.
As of January 2024, both the Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, have received California Air Resource Board (CARB) and EPA certification, making them available for sale in the U.S. The CARB-issued HVIP approval on the Mullen THREE provides an additional incentive, offering up to a $45,000 cash voucher at the time of vehicle purchase. Mullen has also been expanding its commercial dealer network, which now includes seven dealers across key regions in the United States. This expansion provides sales and service coverage in important markets such as 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 operational efficiency and cost-effectiveness. Mullen Automotive's focus on domestic battery production at its Fullerton facility represents a significant step towards achieving greater sustainability and energy independence in the electric vehicle sector. By reducing reliance on imported components and investing in American-made technology, Mullen is not only supporting local manufacturing but also contributing to the broader goals of reducing carbon emissions and promoting sustainable transportation solutions.
As the electric vehicle market continues to grow, Mullen's efforts to establish a robust domestic supply chain for critical components like batteries could play a crucial role in shaping the future of the U.S. automotive industry. This initiative may also serve as a model for other companies looking to enhance their sustainability practices and support domestic manufacturing in the rapidly evolving electric vehicle landscape.
