It will use micro-factories to build electric vans.
Arrival already has an order for 10,000 vans from UPS.
Arrival is a small UK-based vehicle start-up that’s struggled quite a bit over the last year. While it had huge plans for electric cars and buses, a lack of revenue and profit has forced it to narrow its projects down to an electric van. And the way to turn a profit will be by setting up shop in the US.
Arrival’s business model will involve setting up micro-factories that will produce battery-powered vans. A first production verification vehicle has been completed at the company’s Bicester, UK facility which seems to indicate that Arrival might be on track to building more electric vans.
Arrival is already listed in the US and its shares jumped 15% at the news that they are now ready to raise capital in order to “land” in America. It’s unclear how much funding they are seeking however Denis Sverdlov, Arrival’s founder and CEO, estimates the cost of a plant at $50 million, with a further $50 million needed for working capital, according to Automotive News Europe.
Biden’s Inflation Reduction Act offers massive rebates on electric vans that, coupled with the U.S. government’s Advanced Technology Vehicles Manufacturing Loan Program and other options could help launch the first US micro-factory.
Arrival already holds an order for 10,000 vans with United Parcel Service and road tests with UPS in London should being shortly.
