Arrival has rapidly transitioned from a discreet electric vehicle developer to a company poised for a public listing within just one year. The UK-based firm, which maintained a low profile for several years until a $110 million investment from Hyundai and Kia was revealed in January, announced Wednesday an agreement to merge with special purpose acquisition company CIIG Merger Corp.

Prior to Wednesday’s announcement regarding the SPAC merger, Arrival was already recognized as one of the most highly valued startups in the UK. The completion of this deal will result in Arrival becoming a publicly traded entity on the Nasdaq exchange, elevating its valuation to $5.4 billion. Arrival also reported securing $400 million in private investment in public equity, or PIPE, from investors including Fidelity Management & Research Company, Wellington Management, BNP Paribas Asset Management Energy Transition Fund and funds managed by BlackRock, bringing its total cash proceeds to approximately $660 million.

The merger is anticipated to be finalized during the first quarter of 2021.

Arrival’s objective is to manufacture electric vehicles that are cost-competitive with those powered by conventional fossil fuels, and more affordable than other electric vehicles currently available. The company attributes its potential for competitive pricing to its adaptable electric “skateboard” platform – applicable to a diverse range of vehicle types – and its strategy of establishing microfactories in close proximity to major urban centers.

The company currently has functional prototypes for two primary vehicle lines: an electric bus and an electric van. Arrival Automotive CEO Mike Ableson stated the company intends to have four vehicle models available in the market by 2023.

“We are actively building a substantial order backlog for these products, including a commitment for 10,000 electric vans from UPS, with the possibility of further orders in the future,” Ableson communicated to TechCrunch via email. “We are currently preparing microfactories in both the UK and the US to fulfill these orders, with additional facilities planned.”

Becoming a public company through a SPAC will provide Arrival with the necessary capital to realize its “vision of reinventing the automotive industry and accelerating the shift towards zero emissions,” he explained, adding that the company is now concentrating on executive functions and scaling up full vehicle production, beginning with buses in the fourth quarter of 2021 and vans in 2022.

“The funds obtained from this transaction will be dedicated to achieving these goals and accelerating business growth, enabling us to expand and meet market demand,” Ableson said.

Founded and spearheaded by Denis Sverdlov, Arrival already possesses a significant presence and a robust order book, with reported orders totaling $1.2 billion. The company employs over 1,200 individuals and operates five engineering facilities alongside two microfactories, including its first U.S. location in Rock Hill, South Carolina.

The surge in SPAC activity – a period witnessing numerous companies announcing mergers with publicly traded shell companies between June and mid-September – has continued into the autumn months. In recent months, a growing number of companies, including those without established revenue streams or commercially launched products, have pursued SPAC deals, particularly within the capital-intensive transportation sector.

EV startups such as Canoo, Fisker Inc., Lordstown Motors and Nikola Corp. have opted to bypass the conventional route to becoming public companies. ChargePoint, along with lidar companies Luminar and Velodyne, have also merged, or are in the process of merging, with SPACs. Even the struggling electric vehicle manufacturer Faraday Future is exploring a SPAC arrangement.

Arrival, similar to its fellow EV SPAC companies, is eager to capitalize on the growing trend towards electrification, specifically targeting the commercial vehicle market, which is accelerating its adoption of EVs due to increasingly stringent emissions regulations and evolving public policies.

“Arrival believes it is favorably positioned to leverage this market opportunity through its technology-focused approach to a traditionally underserved sector,” Ableson stated.

Following the merger, the newly formed company will be listed on the Nasdaq under the ticker symbol “ARVL.” Peter Cuneo, Chairman and CEO of CIIG, will join Arrival’s board of directors as a non-executive chairman.