Mullen Buys Bankrupt ELMS, Indiana Plant for $240 Million

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The Mullen Five electric crossover at the 2021 LA Auto Show.

After acquiring a 60% controlling interest in Bollinger Motors in September, Mullen Automotive recently bought bankrupt Electric Last Mile Solutions (ELMS) and its assets, including the plant in Mishawaka, IN.

The EV startup received approval from the U.S. Bankruptcy Court on Oct. 13 to acquire ELMS's assets in a $240 million cash transaction.

The California-based startup said the former ELMS plant in Indiana will provide it with the capability to produce up to 50,000 vehicles per year.

Furthermore, the deal will accelerate the launch of the Mullen Five crossover, Bollinger B1 SUV and Bollinger B2 pickup by more than 12 months. This confirms the B1 and B2 are back on the table after Mullen became the majority owner of the Michigan-based startup.

While the Mullen Five and Bollinger B1/B2 retail vehicles will be made at the newly acquired Indiana plant, the Mullen Class 1 and Class 3 Commercial Delivery vehicles will be assembled at Mullen's existing facility in Tunica, MS. The site will become the Commercial Manufacturing Center and will produce all Mullen and Bollinger Class 1 to 6 commercial vehicles.

The Mullen Class 1 and Class 3 commercial vehicles will be the first to arrive on the market in 2023, while production of the Mullen Five will begin in 2024 in Indiana. The company also plans to build the 1,000-horsepower Mullen Five RS "ultra-high-performance EV sport crossover," claimed to be capable of 0-60 mph acceleration in under two seconds and a top speed of 200 mph.

"Mullen's acquisition of Bollinger was one of the largest transactions of its kind in the EV market. Upon closing the ELMS transaction, the company will be in a position to strategically leverage all its acquired assets to shorten its production path and aggressively expand into the commercial and consumer EV market," said David Michery, CEO and chairman of Mullen Automotive.

Mullen said the Indiana factory, which previously produced General Motors' Hummer H2 SUV and SUT vehicles, the Mercedes-Benz R-Class as part of a contract manufacturing deal and ELMS Urban Delivery vans, is the main benefit of the ELMS acquisition. Besides bringing additional production capacity, the plant will enable a significant reduction of Mullen's previously forecast overall spend.

The deal also gives Mullen Automotive control over ELMS's intellectual property rights and inventory---including finished and unfinished vehicles, part modules component parts, tooling, raw materials and more.

We thank InsideEVs for reprint permission.

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