The first production verification vehicle has been produced by Arrival, a startup based in the UK. The company is trying to raise money so it can build and sell electric vehicles in the US.
The company said that the electric van was produced using in-house technologies. Arrival's microfactory concept, which are highly automated small-footprint facilities where it plans to build its vehicles, is proving to be a success.
Denis Sverdlov, founder and CEO at Arrival, said that this is the first time a vehicle has been built in the Microfactory. We are focused on making serial production a reality. Vehicles will be produced in the Microfactory in order to master at-scale production.
We are focused on making it happen despite not having achieved serial production.
Arrival became a publicly traded company in March 2021. Arrival is a company that is working on electric delivery vans, ride-sharing cars, and buses. It has a lot of support from the two Korean companies.
It hasn't been easy. The company would not be able to start serial production in the third quarter due to supply chain disruptions and production hell. The experience of ramping up production of the Model 3 was described by Musk.
The supply chain is broken according to Sverdlov. We are going through our own production hell, but we think we can go through this quicker than traditional companies.
Arrival wants to open several microfactories in the US in order to comply with the recently updated EV tax credits that require vehicles to be produced in North America. The cost of a plant is estimated at $50 million with an additional $50 million for working capital.
Arrival has had to reorganize its company due to the cash crunch. The company went public due to the fact that they were able to tap into a lot of money over the last few years.
Since then, the legacy auto industry has begun to catch up with new entrants like Rivian, which is backed by Amazon.
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