The UK operations of struggling electric vehicle maker Arrival have gone into administration, putting 170 jobs at risk.
The move comes after the startup, previously seen as a pioneer in the EV sector, failed to secure rescue funding and just a week after it was delisted from the Nasdaq stock exchange.
Administrators EY are now exploring options for the sale of the business and assets of the two UK companies. This includes Arrival’s electric vehicle platforms, software, intellectual property and R&D assets.
Arrival was founded in 2015 by the Russian billionaire and former government minister Denis Sverdlov and was working to develop next-generation purpose-built electric vehicles, using flexible and sustainable manufacturing methods. This included its ‘microfactory’ processes, which centred around smaller local plants and cell-based robotic assembly to cut the costs and time involved with production.
It had secured some big orders, including from delivery giant UPS, which had pledged an initial order of 10,000 vehicles, planned for rollout in the UK, Europe and North America over 2020-2024.
Its electric van, revealed in 2021, was intended to revolutionise the commercial vehicle sector with its “outstanding total cost of ownership and robust design”.
At its flotation on New York’s Nasdaq exchange back in 2021, Arrival briefly had a valuation of $13bn (£9bn), making it the biggest-ever initial stock market listing for a UK tech company at the time.
However, EY said Arrival’s plans had been hit by “challenging market and macroeconomic conditions resulting in delays in getting the group’s products to market”.
This led the business to mothball its plans for an electric bus and ride-hailing vehicle in July 2022 and turn its focus to a family of van products for the US market, while also shedding jobs “in response to the challenging economic environment”.
The two UK businesses now in administration include Arrival UK Ltd – which holds the intellectual property for the design of electric vehicles and conducts most of the research and development (R&D) functions. Its primary assets include intellectual property, the equipment used to support the R&D function, proprietary software and prototype vehicles.
Arrival Automotive UK Limited is the manufacturing entity and leases two microfactories in Oxfordshire and owns the manufacturing equipment.
Since the company was founded, more than £1.2bn ($1.5bn) has been invested in its operations. This includes an £85m (£107m) investment from Hyundai and Kia back in 2020 under the firms’ partnership to develop “competitively priced” small- and medium-sized electric vans. UPS had also pledged investment under its venture capital arm.
It’s the latest blow to the UK’s electric vehicle sector, which also saw battery startup Britishvolt collapse in January 2023 after plans for a rescue deal failed.
EV startup Volta Trucks filed for bankruptcy in October 2023, although New York hedge fund Luxor Capital Group later acquired the UK assets.
British electric truck maker Tevva also announced in October 2023 that it was exploring new merger opportunities after a deal with Canadian e-mobility firm ElectraMeccanica fell through.
