TN: Electric Vehicle Start-Up Comes to Memphis, With 434 New Jobs
18 Mar, 2021
The automotive industry is investing heavily in electric and the City of Memphis could play a role in that transformation. California-based electric vehicle manufacturer, Mullen Technologies Inc. is looking for a suitable location for an assembly plant to produce its mid-sized electric SUV, which is currently in development.
Mullen plans to complete design and engineering of the SUV in 2022 and begin production in 2024. The company plans open their plant with the production of 5,000 vehicles in 2024 and grow rapidly to produce approximately 22,000 with $2 billion in sales per year by 2027.
EDGE provided Mullen with a 15-year Jobs PILOT to encourage the company to create 434 new jobs with an average wage of more than $53,000 a year and invest $362 million in the project. Mullen Technologies will renovate 8400 Winchester for the plant, which has been vacant since Nike relocated its operations five years ago.
Mullen has been evaluating various locations for the plant in their home state of California and in Spokane, Washington. The Memphis area provides several advantages as it is ideally suited to better leverage suppliers and reach customers, and there would be two facilities available within 50 miles of one another. The 817,000 square foot Memphis assembly plant could be supported by a 120,000 square foot engineering facility in Tunica, Mississippi. Mullen has secured and intends to utilize both properties if incentives are approved.
8400 Winchester currently produces $423,954 in direct City of Memphis and Shelby County property taxes annually. Estimated direct annual property taxes will average $1,001,390 during the PILOT term and $2,640,067 after. EDGE projects $52,790,868 in total local tax revenues to be received during the PILOT.
15-year Jobs PILOT
434 New Jobs
$53,109 Average Wage (Subsidized healthcare offered at 50%)
$362,400,000 Capital Investment
$52,790,868 Total Local Tax Revenue
$9,742,780 Spending with Local Minority/Women Owned Businesses
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