Mullen Automotive Begins Fulfillment of $210 Million EV Contract with Volt Mobility

Mullen Automotive (NASDAQ: MULN), an electric vehicle manufacturer, has commenced the delivery of vehicles as part of a substantial $210 million purchase agreement with Volt Mobility, a company based in the United Arab Emirates (UAE). This development represents a crucial milestone in Mullen's strategy to expand its commercial EV business on a global scale.

The contract between Mullen and Volt Mobility encompasses the delivery of 3,000 Mullen Class 1 and Class 3 EV cargo vans and trucks over a 16-month period. The initial shipment, which has already been dispatched, marks the beginning of this multivehicle agreement. Volt Mobility intends to lease these electric vehicles to its corporate clients in the region, including major logistics companies such as UPS, DHL, and FedEx.

David Michery, CEO and chair of Mullen Automotive, expressed enthusiasm about the commencement of deliveries, stating, "We're happy to announce we have shipped the first vehicles under our contract with Volt." Michery also revealed that a team from Mullen will be present in Dubai to support the launch with Volt Mobility, underscoring the company's commitment to ensuring a smooth rollout of their vehicles in the UAE market.

This partnership with Volt Mobility follows Mullen's recent expansion into the European market, further solidifying the company's position as a global player in the commercial EV sector. The fulfillment of this contract not only demonstrates Mullen's production capabilities but also its ability to secure and execute large-scale international agreements.

Mullen Automotive has been making significant strides in the EV industry. The company began commercial vehicle production at its Tunica, Mississippi plant in August 2023. Additionally, Mullen received IRS approval for federal EV tax credits on its commercial vehicles in September 2023, offering eligible customers up to $7,500 per vehicle. This designation as a Qualified Manufacturer enhances the attractiveness of Mullen's vehicles in the competitive EV market.

Both the Mullen One, a Class 1 EV cargo van, and Mullen Three, a Class 3 EV cab chassis truck, have received certification from the California Air Resource Board (CARB) and the Environmental Protection Agency (EPA), making them eligible for sale in the United States. The Mullen Three has also been approved for the Hybrid and Zero-Emissions Truck and Bus Voucher Incentive Project (HVIP), providing up to a $45,000 cash voucher at the time of vehicle purchase, further incentivizing adoption of Mullen's electric vehicles.

The company has been expanding its commercial dealer network, partnering with established groups such as Pritchard EV, National Auto Fleet Group, Ziegler Truck Group, Range Truck Group, and Eco Auto. These partnerships provide Mullen with enhanced sales and service coverage in key markets across the Midwest, West Coast, Pacific Northwest, and New England regions.

Furthermore, Mullen recently announced Foreign Trade Zone (FTZ) status approval for its Tunica, Mississippi commercial vehicle manufacturing center. This designation offers several benefits, including the deferment of duties owed and the elimination of duties on exported vehicles, potentially improving the company's competitiveness in international markets.

As Mullen Automotive continues to fulfill its contract with Volt Mobility and expand its global presence, the company is positioning itself as a significant player in the transition towards sustainable transportation solutions. The successful execution of this contract could serve as a springboard for further international growth and solidify Mullen's role in the evolving landscape of commercial electric vehicles.