A British electric vehicle company is putting down roots in the US and plans to take its new production concept globally as demand for new mobility systems grows.
Arrival, which is developing electric vans and buses, announced last week that it is building a second micro-factory in Charlotte, North Carolina. The company plans to assemble vehicles there for a United Parcel Service fleet order starting in the second half of 2022.
President Avinash Rugoobur told CNBC’s Jim Cramer on Monday that its vertically integrated microfactories require less space and capital investments than traditional manufacturing facilities.
“We are partnering with the City of Charlotte to together produce a complete transportation ecosystem,” he said in a “Mad Money” interview. “When you look at the global scale that needs to change to electric, we expect to have microfactories, you know, all over the world.”
Arrival is investing more than $ 41 million in the facility in Charlotte, where its US headquarters are located.
The company plans to go public through a blank check merger with Ciig Merger and expects to hire more than 250 employees at the site. That is in addition to the 650 jobs it said it would bring to the area as part of the corporate offices it announced in December.
Arrival says it is on a mission to accelerate the transition to zero-emission commercial vehicles. The company claims to have a competitive advantage in that it designs its own batteries and other components in-house and writes its own software, Rugoobur said.
“The interesting thing about the microfactory is that it can use the existing warehouses and turn them into production facilities,” Rugoobur said.
UPS placed an order with Arrival nearly a year ago for 10,000 second-generation electric vehicles as part of the transportation giant’s move to electrify its fleet of delivery vans. At the same time, the delivery company took a stake in Arrival.
Electric vehicles are expected to hit the streets over the next four years.