Written by Cláudio Afonso | LinkedIn | X
California-based EV startup Mullen Automotive said on Thursday it acquired a high-volume standard battery chemistry production line and an electro-dynamic shaker system from struggling truck maker Nikola. The companies did not disclose the terms of the deal.
The purchase follows Mullen’s September 2023 acquisition of battery production assets from Nikola’s subsidiary, Romeo Power, for about $3.5 million. That deal included equipment, inventory, and intellectual property for EV battery pack and module production.
Mullen said the newly acquired equipment will be used at its Fullerton, California, facility, where it manufactures battery packs, modules, and advanced solid-state polymers.
The electro-dynamic shaker system will support “in-house laboratory testing of battery and overall system components,” the company added.
The EV maker, led by CEO David Michery, aims to produce its own commercial vehicle battery packs while also exploring industry applications and commercial sales opportunities.
Nikola, based in Phoenix, has been exploring strategic options, including a potential sale, partnerships, or raising additional capital, Bloomberg reported last week, citing people familiar with the matter.
Last October, the company’s chief financial officer Tom Okray stated that the company had a cash runway of “five to six months,” with a monthly burn rate of $30 million to $40 million.
By then, Okray said that the company was “working right now to try to raise the necessary capital to give us the runway to go much further into 2025.” Nikola ended the third quarter of 2024 with approximately $198 million in unrestricted cash.
Mullen submitted last month a revised plan to the U.S. Department of Energy, incorporating its Mishawaka, Indiana, and Fullerton, California, facilities for U.S.-based battery and pack production.
The company is seeking $55 million in matching funds to support domestic manufacturing capabilities.
Shares of EV maker Nikola hit a new record low of 76 cents on Wednesday, just hours after founder and former CEO Trevor Milton published another video addressing the fraud accusations from 2020.
Nearly five years ago, and less than two weeks after signing a $2 billion deal with General Motors, Milton resigned from the truck manufacturer amid a claim that he had repeatedly lied about the company’s technology.
The post Nikola Sells Battery Production Equipment to EV Startup Mullen appeared first on EV.