- EV battery prices becoming increasingly economical, dropping 87% in less than decade with additional 30% drop predicted by 2023
- NETE plans to divest payments processing model to enter EV industry through merger with privately-held Mullen Technologies Inc.
- Battery-focused subsidiary Mullen Energy part of US expansion, thousands of jobs expected to be created
- Pre-orders for MX-05 SUV commenced, production expected to start in 2021
The average real price of electric vehicle (“EV”) batteries has dropped 87% in less than a decade (https://ibn.fm/GRCa9) and is projected to drop even further due to technological innovations destined to make EVs a viable alternative to gas-powered vehicles. Net Element (NASDAQ: NETE), through its pending merger with Mullen Technologies, will be well-positioned to benefit from this trend through Mullen Energy, a Mullen subsidiary focused exclusively on advancing battery technology.
While the current decrease in battery prices is impressive, analysts predict an even further 30% drop over the next three years, reaching a point where EVs will start to reach price parity with internal combustion engine vehicles. A combination of factors concerning battery technology is suggested to contribute to this shift that include cell design, production innovation, changes in the anode materials, changes in the cathode materials, and innovations that will change how the battery is integrated into the car.
Mullen Technologies is already well on its way to making substantial progress on battery technology through subsidiary Mullen Energy. Along with Mullen Auto Sales, Mullen Finance Corp. and a digital marketplace called CarHub, Mullen is well-positioned to expand its footprint in the United States with plans to expand and construct new production facilities that will bring thousands of jobs to the country.
Pre-orders for the five-passenger MX-05 SUV have already started, and manufacturing is expected to commence in the third quarter of 2021 with delivery dates set for the second quarter of 2022. Along with the MX-05, Mullen is planning to build and lease 1.3 million square feet of assembly and manufacturing space in Washington to produce the Dragonfly K50 electric sports car.
The time has never been better to expand into the EV industry. Research by BloombergNEF has suggested that nearly half of all passenger car sales in China will be electric by 2025 (https://ibn.fm/6ZwNQ). Along with the falling prices of batteries, EV mandates across the world paired with changes in fuel regulations are destined to contribute to EV dominance, projected to take over the municipal bus market by 81%, light commercial vehicle sales at 56%, and the medium commercial market at 31%.
A global financial technology and value-added solutions group, NETE has traditionally supported electronic payments acceptance in an omni-channel environment that included point-of-sale, e-commerce and mobile devices. Once ranked as one of the fastest-growing companies in North America by Deloitte, NETE plans to divest its payments-as-a-service business model to enter the electric vehicle industry through a reverse-merger with California-based Mullen Technologies.
For more information, visit the company’s website at www.NetElement.com.
NOTE TO INVESTORS: The latest news and updates relating to NETE are available in the company’s newsroom at http://ibn.fm/NETE