Mullen Automotive Inc. has finalized a deal with Chinese automaker Qiantu for an intellectual property license and exclusive distributive rights in North and South America for the QiantuK50/DragonFLY. The car was originally manufactured in China and produced from 2018 to 2020.
Although the agreement became final recently, talks between the two companies have been going on since 2019, when Qiantu originally agreed to sell Mullen the K50 vehicle kits and launch in 2020. However, the deal went sour and ended with Mullen suing for breach of contract, although the matter was ultimately not taken to court. Now, with Mullen paying $6 million and settling the litigation, the distribution plans are back on track.
“This agreement with Qiantu is an important milestone for the company. Not only does it settle a long outstanding dispute between our respective companies, but also presents the opportunity to fulfill my vision for a supercar that would rival some of the best supercars in the world,” said Mullen CEO David Michery.
The deal will extend five years from when Mullen successfully homologates the vehicles. During that period, Mullen will be required to purchase a minimum number of kits every year, as well as $2 million for deliverable items and pay Qiantu a $1,200 royalty fee per car sold.
Mullen executives have said they plan to re-engineer the K50 to U.S. standards and rebrand as the Mullen GT and GTRS. The GT is expected to have a limited top speed of 125 mph and go 0-60 mph in 4.2 seconds while having a 236-mile range. Details on the GTRS are limited, although it is expected to be able to exceed 200 mph and go 0-60 in 1.95 seconds. Final assembly of the cars will take place in Mishawaka, Indiana.
Acquiring the K50 rights is just one of Mullen’s recent big moves. In September 2022, the company bought controlling interest in EV truck maker Bollinger Motors, and a month later bought failed electric vehicle company Electric Last Mile Solutions, which originally owned the Indiana plant. In addition to Qiantu assembly, Mullen plans to integrate Bollinger’s B1 and B2 vehicle platforms with its own FIVE and FIVE RS platforms in the facility, accelerating the launch of consumer vehicles.
Shares of Mullen (Ticker: MULN) went up slightly after new broke, but overall has continued a downward trend for the past 6 months, currently trading at nearly $0.12.