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Mullen eyes $50 million DOE grant for battery production

EditorAhmed Abdulazez Abdulkadir
Published 09/01/2024, 02:08 am
© Reuters.
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BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), an emerging electric vehicle (EV) manufacturer, has announced its intent to secure a $50 million grant from the U.S. Department of Energy (DOE) to bolster its battery pack production capabilities. This move comes as part of a broader federal initiative to strengthen the domestic advanced battery sector.

The company, through its subsidiary Mullen Advanced Energy, LLC, submitted a Concept Paper detailing its strategy to manufacture approximately 150,000 battery packs in the United States by 2032. These packs will be used in Mullen's EVs, which are assembled at its plant in Tunica, Mississippi. The proposed plan aims to cut current battery costs by over 20%, thereby enhancing Mullen's competitive edge in the market.

The DOE grant, if awarded, will be directed towards capital investment for plant equipment and tooling at Mullen's new 122,000-square-foot facility in Fullerton, California. This facility, announced on November 13, 2023, focuses on the development and production of next-generation EV battery packs.

David Michery, CEO and chairman of Mullen Automotive, expressed the company's commitment to supporting U.S. battery manufacturing, starting with their Fullerton facility. The Concept Paper submission is a preliminary step before Mullen submits a formal application for the DOE funding, expected by March 19, 2024.

Mullen Automotive has been expanding its footprint in the EV market, with a portfolio that includes the Mullen FIVE EV Crossover, Mullen-GO Commercial Urban Delivery EV, and a range of commercial electric vehicles. The acquisition of Bollinger Motors and assets from Electric Last Mile Solutions™ has further extended its capabilities.

The DOE's funding opportunity, announced on November 13, 2023, is backed by up to $3.5 billion from the Bipartisan Infrastructure Law. It aims to ensure the U.S. has a robust battery materials processing industry, critical for the nation's energy independence and the growth of the EV sector.

The information for this report is based on a press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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