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EV maker Next.e.GO plans European, U.S. expansion

EditorHari Govind
Published 21/10/2023, 02:34 am
© Reuters.

Next.e.GO Mobile, a German, low-cost electric vehicle maker, announced Friday that the company intend to establish three additional microfactories in both Europe and the United States within the next few years.

This decision comes as the company aims to bolster the production of its affordable, compact electric vehicles tailored for urban settings.

Currently operating a production facility in Germany, CEO Ali Vezvaei highlighted the company's plans for expansion, including the forthcoming commencement of operations in a North Macedonia factory in 2024.

Furthermore, e.GO has set its sights on constructing another facility in Europe and a manufacturing unit in the United States, with the goal of capitalizing on incentives made available through the U.S. Inflation Reduction Act.

According to Vezvaei, the Aachen-based e.GO's microfactories cost around $60 million to build. The advanced facilities are highly automated and have the capacity to manufacture around 30,000 EVs annually.

The electric automaker has plans to go public via a merger with special purpose acquisition company, Athena Consumer Acquisition. The automaker is valued at around $900 million and will trade on the Nasdaq exchange under ticker symbol EGOX.

The automaker also plans to raise an additional $235 million in cash and $50 million in debt financing.

Next.e.GO Mobile's listing follows a period which saw a number of EV startups capitalized on SPAC mergers, raising billions of dollars. However, several of the startups struggled to effectively produce vehicles on a large scale, leading to a depleted resources.

Athena Chair Isabelle Freidheim said e.GO is different because it is already generating revenue.

"This is not yet just another EV company, but a company that actually makes cars," she said. "So this is very attractive from an investor's point of view."

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