UK-based EV startup Arrival has garnered a fresh $300 million in equity financing in hopes it can slow the financial bleeding that has plagued it in recent months. As previously announced layoffs and cost cuts take effect, Arrival expects the funding to help slow its cash-burn rate, but says it will need to raise even more in order to begin Van production in the US next year.
Arrival ($ARVL) is an UK-based startup focused on delivering urban-centric mobility by way of its last-mile Arrival Van, although at one point the EV developer was soaring high in innovation, also developing an all-electric passenger bus and a rideshare-specific Arrival Car designed alongside Uber.
Like many young startups, Arrival’s need for massive amounts of funding took its toll over time. Following its public offering via an SPAC merger in March of 2021, Arrival’s stock value has tumbled, leading to an announcement last summer that it would be reorganizing its business to focus solely on Van production, halting Bus and Car development.
By October of 2022, Arrival announced it was pivoting its EV business once again, shifting its focus to US production after citing significant costs to scale overseas and a less-than-stellar at-the-market (ATM) platform. The revised strategy mentioned the cutting of “cash-intensive activities,” including staff salaries, particularly “a sizable impact on the company’s global workforce, predominantly in the UK.”
By November, Arrival president and chief of strategy Avinash Rugoobur resigned for personal reasons, and CEO Denis Sverdlov stepped down into a new role as chair of the board. Simultaneously, Arrival had received a letter of compliance because its stock share was too low. The company has until May to get its stock over $1.00 to avoid being delisted. As of this morning, shares are listed at $0.148.
Still, the startup fights on. Its former EVP of digital Igor Torgov will took over as company CEO in late January alongside the unfortunate news that it would be cutting its staff of 1,600 in half. Arrival hopes that these cuts alongside the funding announced today will help it stay liquid through 2023 while it tries to raise additional funding to reach scaled production.
Arrival’s late-2024 Van production feels quite far away
While today’s funding news should be encouraging from those fortunate to remain on staff at Arrival, the EV startup is by no means out of the red yet and has a long road ahead of it to actually reach Van production.
According a report from Automotive News Europe, Arrival believes the $300 million in equity financing from Westwood Capital will help it hit its targeted cash burn rate of $35 million each quarter, at least by the second half of this year. That’s when much of the aforementioned cash cuts and layoffs will take full effect.
The startup also said that the additional capital combined with the measures above should provide more liquidity to the business, at least enough to keep it going until late 2023. Still, Arrival isn’t expected to begin Van production at its US microfactory in Charlotte, North Carolina, until late 2024.
To keep the lights on into next year, Arrival said it is kicking off additional fundraising efforts focused on its targeted Van production timeline. To settle the previously mentioned issue with the Nasdaq listing, Arrival recently called for a meeting of shareholders to vote on a reverse stock split proposal to regain compliance. At the end of 2022, Arrival had approximately $205 million in cash and cash equivalents.
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As “extreme” weather events become more commonplace, the demand for reliable and portable energy continues to rise. In response to that growing demand for dependable off-grid power, Volvo has developed the new PU500 Battery Energy Storage System (BESS) designed to take electrical power when it’s needed most.
Designed to be deployable in a number of environments at a moment’s notice, the Volvo Energy PU500 BESS is equipped with approximately 500 kWh of usable battery capacity (up to 540 kWh total). More than enough juice, in other words, to power a remote construction site, disaster response effort, or even a music festival – anything that needs access to reliable electricity beyond a grid connection.
That’s great, but what sets the PU500 apart from other battery storage solutions is its integrated 240 kW DC fast charger.
“With an integrated CCS2 charger, the PU500 is designed to work with all brands of electric equipment, trucks, and passenger cars,” says Niklas Thulin, Head of BESS Product Offer at Volvo Energy. “This ensures that no matter what type of electric vehicle or machinery you rely on, the PU500 can provide the power you need, making it a truly flexible solution for any grid constrained site or location.”
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The integrated charger in the PU500 has the impressive ability to charge a heavy equipment asset (be that an electric semi truck or something like a wheel loader) in under two hours. Its on-board capacity allows to fully recharge up to 3 electric HD trucks or 20 electric cars per day, making it an incredibly versatile disaster response asset.
In a bold bid to combat the crippling air pollution crisis in its capital, Delhi, Indian lawmakers have begun high-level discussions about a plan to phase out gas and diesel combustion vehicles by 2035 – a move that could cause a seismic shift in the global EV space and provide a cleaner, greener future for India’s capital.
Long considered one of the world’s most polluted capital cities, Indian capital Delhi is taking drastic steps to cut back pollution with a gas and diesel engine ban coming soon – but they want results faster than that. As such, Delhi is starting with a city-wide ban on refueling vehicles more than 15 years old, and it went into effect earlier this week. (!)
“We are installing gadgets at petrol pumps which will identify vehicles older than 15 years, and no fuel will be provided to them,” said Delhi Environment Minister Manjinder Singh Sirsa … but they’re not stopping there. “Additionally, we will intensify scrutiny of heavy vehicles entering Delhi to ensure they meet prescribed environmental standards before being allowed entry.”
The Economic Times is reporting that discussions are underway to pass laws requiring that all future bus purchases will be required to be electric or “clean fuel” (read: CNG or hydrogen) by the end of this year, with a gas/diesel ban on “three-wheelers and light goods vehicles,” (commercial tuk-tuks and delivery mopeds) potentially coming 2026 to 2027 and a similar ban privately owned and operated cars and bikes coming “between 2030 and 2035.”
Electrek’s Take
Xpeng EV with Turing AI and Bulletproof battery; via XPeng.
Last week, Parker Hannifin launched what they’re calling the industry’s first certified Mobile Electrification Technology Center to train mobile equipment technicians make the transition from conventional diesel engines to modern electric motors.
The electrification of mobile equipment is opening new doors for construction and engineering companies working in indoor, environmentally sensitive, or noise-regulated urban environments – but it also poses a new set of challenges that, while they mirror some of the challenges internal combustion faced a century ago, aren’t yet fully solved. These go beyond just getting energy to the equipment assets’ batteries, and include the integration of hydraulic implements, electronic controls, and the myriad of upfit accessories that have been developed over the last five decades to operate on 12V power.
At the same time, manufacturers and dealers have to ensure the safety of their technicians, which includes providing comprehensive training on the intricacies of high-voltage electric vehicle repair and maintenance – and that’s where Parker’s new mobile equipment training program comes in, helping to accelerate the shift to EVs.
“We are excited to partner with these outstanding distributors at a higher level. Their commitment to designing innovative mobile electrification systems aligns perfectly with our vision to empower machine manufacturers in reducing their environmental footprint while enhancing operational efficiency,” explains Mark Schoessler, VP of sales for Parker’s Motion Systems Group. “Their expertise in designing mobile electrification systems and their capability to deliver integrated solutions will help to maximize the impact of Parker’s expanding METC network.”
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The manufacturing equipment experts at Nott Company were among the first to go through the Parker Hannifin training program, certifying their technicians on Parker’s electric motors, drives, coolers, controllers and control systems.
“We are proud to be recognized for our unwavering dedication to advancing mobile electrification technologies and delivering cutting-edge solutions,” says Nott CEO, Markus Rauchhaus. “This milestone would not have been possible without our incredible partners, customers and the team at Nott Company.”
In addition to Nott, two other North American distributors (Depatie Fluid Power in Portage, Michigan, and Hydradyne in Fort Worth, Texas) have completed the Parker certification.
Electrek’s Take
T7X all-electric track loader at CES 2022; via Doosan Bobcat.
With the rise of electric equipment assets like Bobcat’s T7X compact track loader and E10e electric excavator that eliminate traditional hydraulics and rely on high-voltage battery systems, specialized electrical systems training is becoming increasingly important. Seasoned, steady hands with decades of diesel and hydraulic systems experience are obsolete, and they’ll need to learn new skills to stay relevant.
Certification programs like Parker’s are working to bridge that skills gap, equipping technicians with the skills to maximize performance while mitigating risks associated with high-voltage systems. Here’s hoping more of these start popping up sooner than later.