Volt Mobility orders 3,000 electric trucks from Mullen in USD 210 mn deal

Volt Mobility, a commercial leasing giant known for its prestigious clientele like UPS, DHL, and FedEx, is taking a significant leap in the electric vehicle (EV) market. The company has placed a substantial order for 3,000 electric trucks from Mullen Automotive, marking a strategic move that could redefine logistics in the Gulf Cooperation Council (GCC) region.

A Landmark Deal for Mullen and Volt Mobility

In a deal valued at $210 million, Volt Mobility has ordered 3,000 class 1 and class 3 electric cargo vans from Mullen Automotive. This order, set for delivery over the next sixteen months, will position Volt Mobility as a leader in the transition to sustainable logistics within the GCC, which includes key markets like Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE).

David Michery, CEO and Chairman of Mullen Automotive, expressed enthusiasm about the partnership, stating, "Volt Mobility is revolutionising how businesses and individuals move across the UAE and the broader GCC region. This agreement not only gives Mullen significant exposure to global transportation leaders but also enhances the potential for our electric vehicles to play a crucial role in the Middle East’s push towards sustainability."

Why the GCC is Embracing Electric Vehicles?

The GCC, traditionally known for its reliance on fossil fuels, is now witnessing a growing shift towards greener alternatives. The decision by Volt Mobility to invest in such a large fleet of electric trucks reflects a broader regional trend towards sustainability and innovation. The Middle East's governments are increasingly promoting environmental initiatives, making it an opportune time for companies like Volt Mobility to lead by example.

Sophia Nau, Managing Director and CFO of Volt Mobility, underscored the company's pioneering spirit, stating, "At Volt, we don’t just follow trends; we set them. Our mission is clear: to lead the transformation to sustainable, efficient, and cutting-edge transportation."

Mullen's Manufacturing Might: The Tunica Facility

The electric trucks ordered by Volt Mobility will be assembled at Mullen’s Commercial Vehicle Facility in Tunica, Mississippi. This plant, a former General Motors site, has the capacity to produce 20,000 class 1 and 6,000 class 3 vehicles annually with two production shifts. This manufacturing strength is critical for Mullen as it seeks to meet the high demand from Volt Mobility and other clients.

The financial details of the deal reveal that Mullen will receive an initial $3 million deposit within 60 days, with subsequent payments tied to the delivery of the vehicles. This structured payment plan underscores the confidence both companies have in the successful execution of this landmark agreement.

The Road Ahead: Challenges and Opportunities

Mullen Automotive’s partnership with Volt Mobility represents a significant milestone in the company's journey. Despite the challenges and scepticism that have often surrounded Mullen, this deal positions the automaker as a resilient player in the EV market. The partnership also signals a shift in the logistics industry, particularly in the Middle East, where the adoption of electric vehicles has been slower compared to other regions.

The decision by Volt Mobility to opt for electric trucks over traditional diesel-powered vehicles is not just a business choice; it reflects a broader commitment to sustainability and innovation. As the world grapples with climate change and environmental degradation, such moves are becoming increasingly critical.

A Bold Move in a Changing Market

Volt Mobility’s $210 million investment in Mullen’s electric trucks is more than just a purchase; it’s a statement of intent. The company is not only aiming to meet the logistical needs of its clients but also to lead the way in sustainable transportation. This bold move could set a precedent for other logistics firms in the GCC and beyond, signalling a new era of green logistics in a region traditionally dominated by oil.

As the first of these electric trucks begin to roll out, all eyes will be on Volt Mobility and Mullen to see if they can deliver on their promise of transforming transportation in the Middle East. The success of this partnership could have far-reaching implications, not just for the companies involved, but for the global logistics and automotive industries as a whole.