Mullen Automotive, an emerging player in the electric vehicle (EV) sector, has announced a pivotal $210 million agreement with Volt Mobility, a UAE-based commercial leasing company, to deliver 3,000 Class 1 and Class 3 EV cargo vans and trucks over 16 months. This deal not only signifies a major revenue opportunity for Mullen but also strategically positions the company in the Middle East, a region experiencing rapid growth in EV adoption.
The agreement includes an initial $3 million deposit within 60 days, with the remainder paid upon vehicle deliveries. Mullen plans to start shipments immediately, anticipating full revenue recognition over the contract period. Volt Mobility's plan to lease these vehicles to corporate clients in the Middle East and GCC region reflects the increasing demand for electric commercial vehicles, aligning with global shifts towards sustainability.
David Michery, CEO of Mullen Automotive, emphasized the deal's importance in gaining exposure to global transportation companies and expanding Mullen's EV utilization across the UAE and broader Middle East. This contract not only validates Mullen's competitive edge in the EV market but also showcases its capability to secure and fulfill large-scale international orders.
Beyond financial benefits, this agreement underscores Mullen's growing influence in the global EV industry, following recent milestones like commercial vehicle production in Mississippi and IRS approval for federal EV tax credits. The deal with Volt Mobility could accelerate Mullen's expansion and set a benchmark for American EV manufacturers in international markets.
The global automotive industry's shift towards electrification is further evidenced by this partnership, highlighting the potential for similar collaborations in emerging markets. Mullen's execution of this contract will be a key indicator of the challenges and opportunities in scaling EV production for worldwide distribution, offering insights for the broader industry.
