Arrival will make UPS electric vans in $41m Charlotte micro-factory

Electric vehicle manufacturer Arrival will invest over $41 million in a new micro-factory in Charlotte, North Carolina, to produce zero-emission vans for UPS and other fleet operators.

The UK-based start-up announced yesterday (March 17) that its second US micro-factory will be built in West Charlotte, near Charlotte Douglas International Airport. It is due to begin production by Q3, 2022, creating more than 250 new jobs in the area. 

Arrival is investing approximately $41.2 million in the modern production center that can assemble up to 10,000 electric delivery vans each year. Many of the vehicles produced at the Charlotte micro-factory 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.

The company’s first two micro-factories, in Bicester, UK, and in Rock Hill, South Carolina, are due to go into operation this year.

Low-cost production facilities

Michael Ableson, CEO, Arrival Automotive, said: “Our newest micro-factory 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.”

Arrival, founded in 2015, claims it is “accelerating the transition” to zero-emission commercial vehicles by creating best in class products that are comparable in price with fossil fuel equivalents, offering a substantially lower Total Cost of Ownership (TCO) for operators by using a pioneering new method of design and production. The company’s vertically integrated approach uses in-house developed hardware and software and combines it with assembly in low-cost micro-factories.

UPS to speed up EV roll-out

Luke Wake, vice president of maintenance and engineering, UPS Corporate Automotive, commented: “We’re excited by this significant milestone that will enable UPS to economically deploy electric vehicles throughout our global operations at an increasing pace.

“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,” he said.