West Plains development board extends agreement for electric car plant

Local public development authority officials have extended the timeline for an agreement with a California company to build a manufacturing facility for high-end electric sports cars on the West Plains.

Mullen Technologies signed a letter of intent with the West Plains Public Development Authority in April that calls for the agency to build and lease 1.3 million square feet of assembly and manufacturing space for the Qiantu K50 electric car.

The high-performance Qiantu K50, unveiled at the International Auto Show in New York earlier this year, is powered by a lithium-ion battery. It is capable of reaching 60 mph in less than 4.2 seconds and has a range of 250 miles.

The West Plains PDA voted last week to extend the letter of intent with Mullen Technologies until March 2020, allowing the company more time to secure funding for the project.

Mullen initially agreed to raise an equity investment of $50 million before entering a lease agreement with the PDA by a Sept. 18 deadline, according to the letter of intent.

“It takes time to develop equity needed to move projects forward,” said Todd Coleman, West Plains PDA executive director. “They needed a little more time.”

The project would bring 55 jobs upon initial startup and is projected to add 863 jobs by 2026, according to officials. Mullen Technologies, through Mullen Energy, also expressed interest in bringing in research and development for lithium-ion batteries, which would create up to 3,000 jobs.

Phase one of the development, which calls for a 500,000-square-foot facility for automobile manufacturing and research for lithium-ion batteries, is slated for completion by 2021. The second phase, completed two to three years later, would include an 800,000-square-foot building for commercialization of the batteries.

The PDA and Mullen are discussing how to meet the aggressive construction timeline for the project, which isn’t expected to change with letter of intent extension, Coleman said.

“Our goal between us and them is to kick off the project by December,” he said.

Coleman said Mullen representatives are in Washington, D.C., this week finalizing an Advanced Technology Vehicles Manufacturing loan with the U.S. Department of Energy and attending meetings for potential opportunity-zone funding for the project.

The proposed assembly facility would be in an opportunity zone, which is designed to spur economic development through tax benefits to investors.

Mullen Technologies wasn’t immediately available for comment Thursday.

Spokane County Commissioner Al French, a West Plains PDA board member, said he remains optimistic that Mullen will secure the funding needed for the project.

“All we are doing is giving a little bit more time to dot the i’s and cross the t’s,” French said, referring to the letter of intent extension. “Not only am I optimistic about it, (Mullen Technologies is) also going to be doing a presentation in Washington, D.C., next month. It’s moving forward. It’s getting a good response in the market. A deal this size doesn’t happen overnight.”

The West Plains PDA will build the manufacturing and assembly facility, and provide rail access. The entire project would be financed through a revenue bond that would be paid back through the lease agreement with Mullen Technologies.

The letter of intent also includes an option for Mullen Technologies to potentially own and operate the Spokane County Raceway for vehicle demonstrations and events.

The PDA is working with Mullen to secure a temporary 100,000-square-foot facility for battery research, production, development and initial assembly of the sports car. It’s anticipated the company will move into the temporary facility early next year, Coleman said.

The Qiantu K50 is slated to launch in 2020 under a partnership with China-based Qiantu Motor, which would ship vehicle parts to the United States. Mullen would then assemble the cars in Spokane.

The starting price of the Qiantu K50 is $125,000, according the company’s website.

In May, Mullen Technologies acquired a dealership in Oceanside, California, that would be the first retail location to showcase the Qiantu K50. The company purchased another dealership this month in Fresno, California, with a showroom and service and parts departments.