California-based electric vehicle startup Mullen Automotive said on Thursday it had acquired a high-volume standard battery chemistry production line and an electro-dynamic shaker system from Nikola, the Phoenix-based truck manufacturer exploring strategic options. The terms of the deal were not disclosed.
The purchase follows Mullen’s acquisition in September 2023 of battery production assets from Nikola’s subsidiary, Romeo Power, for about $3.5 million. That transaction included equipment, inventory, and intellectual property for EV battery pack and module production.
Mullen said the newly acquired equipment would be integrated into its Fullerton, California, facility, which manufactures battery packs, modules, and solid-state polymer technology. The electro-dynamic shaker system will allow for “in-house laboratory testing of battery and overall system components,” the company added.
See also: Nikola Faces Leadership Shake-Up as Financial Pressures Mount
Mullen, led by CEO David Michery, is focused on developing in-house battery packs for commercial vehicles while exploring additional industry applications and potential sales.
Nikola has been evaluating options such as a sale, partnerships, or raising additional capital, Bloomberg reported last week, citing sources familiar with the matter. In October, Chief Financial Officer Tom Okray said the company had a cash runway of “five to six months,” with a monthly cash burn of $30 million to $40 million.
See also: Nikola Considers Sale Amid Financial Struggles
Mullen, meanwhile, submitted a revised plan last month to the U.S. Department of Energy, incorporating its Indiana and California facilities into its U.S.-based battery and pack production strategy. The company is seeking $55 million in matching funds to bolster domestic manufacturing capabilities.
