EV startup Arrival to refocus business on electric vans for the U.S. market

In 2018, fledgling EV maker Arrival partnered with UPS to build a new generation of electric delivery vans, beginning with a pilot fleet of 35 vehicles, for use in both the U.S. and Europe. The company quickly expanded its scope from there, working on plans for an electrified bus, an EV rideshare vehicle for Uber and an $11.5 million battery plant. However, on Thursday the company abruptly announced that it has decided to shutter its bus and automotive projects to instead “refocus its resources on the US market while further advancing its enabling technologies.”

In a press release Thursday, the company stated that “scaling production in the Bicester [UK] microfactory requires significant further investment in hard tooling and working capital and the Company has determined that the benefits of such an investment would be best directed to the U.S. market.” As such, the company will restructure and focus its efforts on the Van and the underlying tech that makes it run.

Arrival cites the U.S. EV tax credit as a major influence on its decision, noting that the Inflation Reduction Act is, “expected to offer between $7,500 to $40,000 for commercial vehicles, [a] large addressable market size, and substantially better margins.” Unfortunately, the company will have to (ugh, their words) “right size” the UK workforce, as in layoffs.