Arrival to Build Battery Module Plant in North Carolina

Arrival Invests in Battery Module Assembly Plant

Arrival, the electric vehicle manufacturer pioneering a shift away from traditional assembly lines towards a network of microfactories, is making a significant investment of $11.5 million. This funding will facilitate the construction of a high-voltage battery module assembly facility located in Charlotte, North Carolina.

The new plant is strategically designed to supply batteries for electric buses and vans. These vehicles will be manufactured at Arrival’s microfactories situated in Rock Hill, South Carolina, and Charlotte, North Carolina.

Closed-Loop Battery Supply Chain

In addition to this investment, Arrival recently established a collaborative agreement with Li-Cycle, a specialized lithium-ion battery recycler. This partnership aims to establish a fully integrated, closed-loop supply chain for EV batteries.

Like many other automotive manufacturers, Arrival is acknowledging the challenges posed by supply chain disruptions and material scarcity. The company is actively pursuing vertical integration to gain greater control over its production processes, all while upholding its dedication to sustainable practices.

Strategic Shift to In-House Assembly

“Initially, this wasn’t part of our original plan,” explained Katie Blixt, Arrival’s Head of PR and Communications for North America, in an interview with TechCrunch. “As we refined our production strategy and timeline, we determined that assembling these modules internally would provide us with enhanced control over the entire process.”

This decision supports the company’s broader strategy of vertical integration.

Production Timeline and Capacity

Arrival intends to repurpose an existing warehouse to accommodate the new battery module assembly line. Production is anticipated to commence in the third quarter of 2022, as stated by Blixt.

LG serves as Arrival’s supplier for battery chemistry. The plant is projected to achieve an annual production capacity of up to 350,000 battery modules.

These modules will be adaptable for use across Arrival’s range of commercial vehicle platforms and can be customized to meet specific customer battery requirements.

Microfactory Expansion Plans

Arrival has previously announced ambitions to establish 31 microfactories by the year 2024. Currently, three are slated for completion in 2022.

Bus production is scheduled to begin at Rock Hill in the second quarter of next year.
Van production will commence in Bicester, England, during the third quarter.
Van production is also planned for Charlotte in the fourth quarter.

“We have revised our long-term projections regarding microfactory numbers,” Blixt clarified. “The benefit of the microfactory model lies in its flexibility; we are not obligated to plan years in advance. The number of facilities will be determined by market demand and capital availability.”

Scaling Battery Assembly with Microfactories

As Arrival expands its network of microfactories, it will concurrently scale its battery assembly capabilities. This approach contrasts with the large-scale “gigafactory” model adopted by Tesla.

Blixt indicated that Arrival may establish multiple regional battery assembly facilities to efficiently supply its local microfactories.

Smart Battery Modules and Diagnostics

The battery modules will incorporate software-based systems and self-diagnostic features. This allows for the replacement of individual faulty modules, rather than the entire battery pack, if an issue arises.

Should the software detect an anomaly, it will transmit data to the cloud for analysis by Arrival’s technicians. They will then provide instructions to Arrival’s network of external service providers.

Arrival has recently formed partnerships with companies such as Valvoline and Firestone to provide maintenance services to its customers.