Arcimoto’s tiny EV tech to enter the US military
The US military is looking to deploy tiny electric vehicles; at least, that is what a new deal with Arcimoto suggests. The EV startup said on Monday it scored a partnership with Department of Defense contractor Matbock.
Best known for its doorless “fun utility vehicles” or e-trikes and a truly tiny box truck, the contract is a surprise in the Arcimoto-verse. Regardless, the company said it will sell “electrical systems architecture and energy storage systems” to Matbock, which makes “hybrid-electric tactical vehicles”.
The deal also appears to lead back directly to Arcimoto CEO Chris Dawson, who told TechCrunch in April that he had previously consulted with the Department of Defense.
According to Dawson, Matbock will ultimately “assist the military’s efforts to improve tactical capabilities and operational efficiencies through the adoption of American-made green energy technology.” The US military is among the worst climate polluters on Earth.
Matbock will also leverage Arcimoto’s supply chain.
Further details on the vehicle remain scarce. Veteran-led Matbock has, however, worked on its tactical EV program since 2022. By using Arcimoto’s drive and battery system, the company says it has enhanced overall performance and operational range.
In turn, the military deal throws Arcimoto a lifeline. The company kicked off the year with a production halt due to financial issues, as reported. Since then, the company says it has secured nearly $25 million via three fundraisers. Arcimoto is due to share its latest financials with investors later this week and perhaps also disclose the volume of the military contract.
It remains to be seen whether the new deal will reinstall faith in the startup. In January this year, shares fell by 60% leading to the company losing almost all its value since peaking at $600 in February 2021. 2021 had also been the last strong year for the company, starting with the announcement that Arcimoto had found a new manufacturing site in Oregon and acquired Tilting Motor Works, a company specialising in three-wheel conversion kits for touring motorcycles. Arcimoto delivered its first electric trike back in 2017. The Oregon facility took up production in March 2022.
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