Arrival Opens Second US Microfactory for UPS Electric Vans

Arrival to Establish Second U.S. Microfactory

Arrival, a U.K.-based electric vehicle (EV) company poised to become publicly listed, has revealed plans for a second microfactory within the United States.

Expansion of North American Operations

This announcement follows the earlier selection of Charlotte, North Carolina, as the location for Arrival’s North American headquarters. The new facility will be situated in West Charlotte, close to the airport, and approximately 32 miles from the company’s initial U.S. factory in Rock Hill, South Carolina.

Production Focus and Capacity

According to CEO Mike Ableson, the newly established microfactory will focus on the production of two distinct classes of electric vans designed for U.S. customers. This expansion aims to broaden the availability of zero-emission options for commercial fleet operators.

Production is anticipated to commence during the third quarter of 2022. Arrival is allocating approximately $41.2 million towards this production center, which will possess an annual assembly capacity of up to 10,000 electric delivery vans.

UPS as a Key Customer

A significant portion of the vehicles manufactured at the Charlotte microfactory is projected to be integrated into UPS’s North American fleet. UPS has previously committed to purchasing up to 10,000 vehicles from Arrival, spanning both the U.S. and European markets.

Microfactory Specialization

The company’s existing U.S. microfactory, located in Rock Hill, South Carolina, will be dedicated to the assembly of electric buses.

Recent Developments and Public Listing

For nearly five years, Arrival operated as a relatively discreet EV startup. This changed in January 2020 with a $110 million investment from Hyundai and Kia.

Over the subsequent 14 months, Arrival progressively unveiled its strategic plans and partnerships. These developments culminated in last month’s announcement of a merger with CIIG Merger Corp., a special purpose acquisition company (SPAC), intended to facilitate its transition to a publicly traded entity.

The completion of the SPAC merger is currently expected in the first quarter of 2021.

The Microfactory Advantage

Arrival’s core business strategy revolves around its network of microfactories. The company contends that this approach enables the production of electric vehicles that are competitively priced against their fossil fuel-powered counterparts, including commercial vans, buses, and other vehicle types.

These microfactories are characterized by lower capital expenditure requirements and a reduced physical footprint compared to traditional manufacturing facilities, as highlighted by Arrival.