UK based EV van manufacturer Arrival has announced it is to invest $41 million in a new micro-factory in Charlotte, North Carolina where it is to make electric delivery vans for UPS and other carriers.

The new factory will create more than 250 jobs in the area and is set to begin production by Q3, 2022. It will have the capacity to make as many as 10,000 electric vans annually, many of which will enter the UPS US fleet. UPS has committed to buy 10,000 such vehicles from Arrival for its US and European markets.

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 one of many paths UPS is taking to reduce its CO2 emissions.”

The innovative EV van makers are to begin production at their two first factories – in Bicester, Oxon and Rock Hill, South Carolina – later in 2021.

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.”