Shares of Mullen Automotive (NASDAQ:MULN) are in the spotlight today. The company announced that it acquired a lease for a 122,000-square-foot warehouse in Fullerton, California. The facility previously produced Kraft Heinz (NASDAQ:KHC) Lunchables meals before closing its doors in 2018, leaving hundreds of workers jobless. Before that, the facility produced Claussen pickles.
According to an executive at CBRE, which represents the owner of the warehouse, Mullen picked the building because of its high power capacity and proximity to its headquarters in Brea, California. The building has capacity of 1 GWh per year. The financial terms of the agreement were not disclosed.
MULN Stock: Mullen Secures Lease to Warehouse
The new warehouse will focus on expanding the development and production of Mullen’s solid-state battery (SSB) technology. As a result of the lease, Mullen plans on shutting down its high-energy pilot facility in Monrovia, California, by the end of the year. The Monrovia facility, as well as the recently purchased Romeo Power assets, will be consolidated at the warehouse in Fullerton, California.
“We are one step closer to fulfilling our commitment to providing the next-generation of battery technology to our lineup of EV vehicles, providing a clean and safe alternative to current lithium-ion batteries,” said CEO David Michery.
Mullen has also announced that it will begin the process of calibrating its solid-state polymer (SSP) battery BMS for integration into its Class 1 ONE van starting in December. The company then expects to begin test drives of the SSP battery-equipped vehicle starting in Q1 of 2024.
The ONE is currently equipped with a lithium iron phosphate (LFP) battery, giving it a range of 110 miles. Mullen states that the SSP battery will increase that range to 190 miles, which will be “class-leading across all current available Class 1 commercial vehicles.” The ONE starts at $34,500 before tax credits.
It’s not exactly clear how Mullen will transform a former food production facility to a SSB facility. The costs associated with it are another unknown. The company characterized the building as a “brand-new and state-of-the-art location.”
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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.
