Mullen buys Nikola’s battery business
Mullen had already acquired the first production facilities of battery manufacturer Romeo Power, which was purchased by Nikola in 2022, in September 2023, and has now taken over additional equipment for battery production at its plant in Fullerton, California.
Specifically, this involves a high-volume production line for “standard battery chemistry,” an electro-dynamic shaker system (vibration table) for internal laboratory testing of battery and overall system components. When the construction of these facilities in Fullerton is complete, Mullen USA says it will have two high-volume production lines, two pilot lines (one for standard battery chemistries and one for solid polymer batteries) and a “full battery testing laboratory.”
Mullen is “focused on increasing U.S. manufacturing capabilities in response to demand for American-made battery components and systems.” The company plans to manufacture its own commercial vehicle batteries while pursuing other industry applications and commercial sales opportunities.
“We continue to execute our plan of transitioning to American-made battery components and we are doing it right here in Southern California,” said David Michery, CEO and chairman of Mullen Automotive.
That was precisely the plan Nikola Motors had in mind when the aspiring commercial vehicle manufacturer announced the acquisition of Romeo Power in the summer of 2022. It gave Nikola direct access to its own production of battery packs for its battery and hydrogen trucks. Romeo production was later relocated from California to Nikola’s Coolidge (Arizona) plant. However, Nikola is running out of money, and the manufacturer has been looking into selling or partially selling its business since January.
Shortly after the IPO in 2020, Nikola was even valued higher than Ford on the stock market. However, a scandal soon erupted that plunged Nikola into crisis: the founder and then CEO Trevor Milton was found to have made false statements about the company’s technology and was later convicted of fraud.
Since this scandal, Nikola has never emerged from the turmoil. Some of the company’s financial difficulties can be traced back to problems with its electric trucks. Nikola recalled all 209 battery-electric trucks it sold in 2023 and temporarily halted sales after an investigation into fires found a flaw in the battery packs.
Mullen also has an eventful history: the company initially wanted to build an electric saloon, then produce the Chinese electric sports car Qiantu K50 in the US in 2018. Just two years later, it suddenly planned to manufacture an electric SUV called the MX-05 and test solid-state cells. In 2022, short-seller Hindenburg Research, which had already taken action against Nikola, also took a swing at Mullen. However, the company survived the attack – and after taking over Bollinger and ELMS, its focus returned to commercial vehicles. The company has now received large orders for electric vans and trucks, but Mullen no longer talks about the MX-05 SUV.
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