Earlier this month, Mullen Automotive (NASDAQ:MULN) announced that it had formed Mullen Advanced Energy Operations (MAEO), a joint venture (JV) in collaboration with Global EV Technology and EV Technologies (collectively known as EVT). Under the terms of the letter of agreement for the joint venture, EVT will provide MAEO with a license for its technology, including its energy management module (EMM). MAEO will also receive all of the rights for EVT’s contracts and purchase orders. However, there is an exception: “EVT may grant a limited exclusive license to the Technology to a third party specifically for the United Arab Emirates.”
Mullen owns a 51% stake in MAEO while EVT owns the remaining 49%. The licensed technology won’t come free, as Mullen has agreed to pay Global EV founder and Chief Scientific Officer Lawrence Hardge $50,000. Upon the execution of not yet disclosed definitive agreements, Mullen will also pay Hardge an additional $5 million. On top of that, Mullen will invest $5 million into MAEO for business operations.
Here’s what else investors should know about MULN stock and the new technology behind Mullen Automotive.
MULN Stock: The Details on MAEO’s EMM Technology
So, what exactly is the technology that Mullen has received the license for? The EMM technology, called Ever-Charge, can increase “typical EVB runtimes by up to 300+ percent and extends the mileage and range capacity of almost any EVB by hundreds of miles.” Previous testing of Ever-Charge by Element Materials Technology showed that it increased the range of a “high-volume OEM electric vehicle” to 431 miles from 269 miles. That reflects an efficiency increase of 60%. Mullen later revealed the tested electric vehicle (EV) to be a 2020 Chevy Bolt. The company disclosed that a U.S. provisional patent application for Ever-Charge has already been filed.
The phone-sized Ever-Charge can be outfitted to any EV battery, regardless of the manufacturer. With the “right conditions,” Global EV notes that it can increase the range of top EVs by 500 to 700 miles. Furthermore, an EV equipped with Ever-Charge can reach full charge at public charging stations within 15 to 20 minutes.
Global EV explained the following:
“Global EV Technology’s electrical energy management module is the only regenerative energy source that can recharge EVBs even while sitting cold and unplugged from chargers. The Ever-Charge™ Technology can continually power up itself once attached to any battery.”
Shareholders still haven’t responded positively to these developments, however. MULN stock is down more than 25% this month.
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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.
