Mullen Automotive (NASDAQ:MULN) announced the formation of Mullen Advanced Energy Operations (MAEO) earlier this week. MAEO is a joint venture (JV) in collaboration with Global EV Technology and EV Technologies (collectively known as EVT). MAEO’s primary focus is to improve energy management in batteries, including by increasing the range of an electric vehicle (EV) battery.
Mullen will own a 51% stake in MAEO, while EVT will own the remaining 49%. A day after the JV announcement, Mullen also announced the test results of MAEO’s energy management module (EMM) technology. The test, conducted by Element Materials Technology, showed that EMM increased the range of a “high-volume OEM electric vehicle” to 431 miles from 269 miles. That marks an increase of 60%. Mullen engineers also tested out the EMM technology on the company’s Class 1 cargo van. This increased the range of the van’s 42-kilowatt hour (kWh) lithium-ion battery pack by more than 75%.
With that in mind, let’s take a look at 10 things investors should know about MULN stock and MAEO.
MULN Stock: 10 Things to Know About Mullen’s MAEO
- Mullen has plans to equip all of its commercial and consumer vehicles with its new EMM technology.
- Furthermore, Mullen announced that a U.S. provisional patent application has already been filed for EMM.
- Under the letter of agreement, EVT has agreed to license MAEO technology “previously known as a Battery Life Enhancing Technology along with Ever-Charge Technology and/or Energy Management Module” as well as related intellectual property (IP) rights.
- EVT will also license MAEO with all of its rights to contracts, government contracts and purchase orders.
- Still, there is an exception. EVT has the right to grant a limited exclusive license concerning the technology “to a third party specifically for the United Arab Emirates.”
- As part of the agreement, Mullen will pay Global EV founder and Chief Scientific Officer Lawrence Hardge $50,000.
- In addition, Mullen will pay Hardge $5 million upon the completion of specific definitive agreements and the assignment of all IP to MAEO. The definitive agreements have not yet been disclosed.
- Mullen itself will invest $5 million into MAEO to run business operations.
- In a livestream yesterday, Hardge teased a “$10 billion contract with Saudi Arabia” that is “already agreed upon.”
- Mullen and MAEO have not yet confirmed the existence of such a contract.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
