Mullen Automotive Reaches Settlement with GEM Over Mishawaka Assets

Mullen Automotive Inc. has successfully negotiated a settlement agreement with GEM Yield Bahamas Limited and GEM Global Yield LLC SCS, effectively ending a lengthy legal dispute that has spanned four years. Under the terms of the settlement, GEM will have a 55-day due diligence period to evaluate the transfer of Mullen's Mishawaka, Indiana assets, which will serve as full satisfaction of the previous judgment.

During this evaluation period, all collection activities will be suspended, providing both parties an opportunity to complete the asset transfer process. The agreement allows Mullen to maintain its strategic focus on expanding manufacturing capabilities at its Tunica, Mississippi facility, which currently produces commercial electric vehicles.

The settlement comes at a critical time for Mullen, which has recently achieved significant milestones in its electric vehicle production. As of January 2024, the company has two certified vehicle models—the Mullen ONE cargo van and Mullen THREE truck chassis—available for sale in the United States. The company has also secured federal EV tax credits and California Air Resource Board certification, positioning itself competitively in the growing commercial electric vehicle market.

By resolving this legal dispute, Mullen can now dedicate more resources to scaling its manufacturing operations and expanding its commercial dealer network, which currently includes seven dealers across key U.S. markets. The company's recent Foreign Trade Zone status approval for its Tunica facility further enhances its operational flexibility and potential cost efficiencies.