Global electric vehicles producer Arrival will be building its second U.S. Microfactory in Charlotte, North Carolina. The new facility, located near Charlotte Douglas International Airport at the Meadow Oak Commerce Center, is expected to create 250 new jobs in Mecklenburg County.
Arrival is investing approximately $41.2 million in the modern production center that can assemble up to 10,000 electric delivery vans each year. The Microfactory is expected to begin production by the third quarter of 2022.
The company’s vertically integrated approach uses in-house developed hardware and software and combines it with assembly in Microfactories, according to local officials. The Microfactories are low CapEx, have a smaller footprint than conventional factories, have the ability to create significant unit economics and can be placed all over the world to serve local communities, bolstering local communities and economies. The Microfactory is expected to begin production by the third quarter of 2022.
“Arrival is excited to expand its presence in Charlotte and we look forward to playing an even bigger role in contributing to the local community and bringing onboard the region’s local talent. Our newest Microfactory will be producing two different classes of EV Vans for our US customers, expanding the zero-emissions options for fleet operators and accelerating the mass adoption of electric vehicles. We are pleased to increase our investment as we extend our partnership with the City of Charlotte and believe we will continue to see strong demand for our vehicles as more operators transition to electric,” said Michael Ableson, CEO, Arrival Automotive.
Many of the vehicles produced at the Charlotte Microfactory are expected to enter UPS’s North American fleet as part of its commitment to purchase up to 10,000 vehicles from Arrival in the US and Europe.
“We’re excited by this significant milestone that will enable UPS to economically deploy electric vehicles throughout our global operations at an increasing pace,” said Luke Wake, vice president of maintenance and engineering, UPS Corporate Automotive. “At UPS, we’re laser focused on finding operational efficiencies. Establishing factories that can quickly serve both the European and North American markets is a masterful use of logistics. We can’t wait to see UPS’s new electric vehicles roll out of this factory as this is also one of many paths UPS is taking to reduce its CO2 emissions.”
The project was a collaborative effort between the City of Charlotte, Mecklenburg County, North Carolina Department of Transportation, North Carolina Department of Commerce, University of North Carolina Charlotte, North Carolina Community College System, Duke Energy, the Charlotte Regional Business Alliance and the Economic Development Partnership of North Carolina.
“Arrival’s continued expansion in the Charlotte Region is a testament to our existing strengths in manufacturing and our collective vision of this community’s future in innovation and sustainability. Arrival’s reimagining of transportation will benefit our entire region, and the company’s multifaceted growth here is a model for how the City, County and surrounding counties can deliver on what businesses need to succeed. Together, we are building a better future for us all,” said Janet LaBar, President and CEO of the Charlotte Regional Business Alliance.
Last fall, Arrival announced it would be opening a Microfactory facility for its electric buses in Rock Hill, South Carolina, and in December 2020, announced it would establish its North American headquarters in South End, creating over 650 jobs in the Charlotte region.