Mullen Automotive (NASDAQ:MULN) stock is in full focus after it announced that its subsidiary Mullen Advanced Energy had submitted a concept paper submission for the U.S. Department of Energy’s (DOE) Funding Opportunity for Battery Materials program. Mullen expects to submit a formalized application to the DOE on or before March 19.
The DOE program provides up to $3.5 billion in funding to support the domestic production of batteries and battery materials. Mullen has requested a grant of $50 million to use toward battery equipment and tooling at its high-energy facility in Fullerton, California.
“We are all in on supporting battery manufacturing here in the U.S., starting right here in our own high-energy facility in Fullerton, California,” said CEO David Michery.
MULN Stock: Mullen Requests $50 Million of DOE Funding for Battery Initiatives
Mullen wrote in its concept paper plan that current battery costs could be reduced by as much as 20%, which would help Mullen become more competitive in the EV market. Through 2032, the company estimates that it can manufacture 150,000 battery packs.
Last November, Mullen announced that it had added the 1 GWh/year high-energy facility in Fullerton to its portfolio. The 122,000 sq. ft. facility will house the $3.5 million of assets purchased from Romeo Power, which includes intellectual property, inventory, and equipment.
In December, the company began integrating its solid-state battery (SSB) into its Class 1 EV van, the Mullen ONE. The integration was successful, with Mullen announcing that pack-level testing would begin on Dec. 28.
Afterward, road tests of the SSB-equipped van are expected to begin sometime this quarter. The van’s current range of 110 miles is expected to increase to over 190 miles with the SSB, marking a 73% increase.
Besides these announcements, the technical aspects of Mullen’s SSB still remain vague. The company’s last venture into batteries through subsidiary Mullen Advanced Energy Operations (MAEO) turned out to be a waste following a fallout with Lawrence Hardge. Last month, Hardge posted on X (formerly Twitter) that Mullen had filed a lawsuit against him for violating a non-disclosure agreement (NDA).
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
