- Aptera has unveiled its first large strategic investor.
- The California startup partnered with China’s Launch Design to fast-track the production of the three-wheeled solar EV.
- Launch Design is investing millions of dollars into Aptera and offering access to its production facilities.
Aptera, the California startup that’s been working for over a decade to make a solar-powered electric vehicle, has a new partner that should help it assemble the famed three-wheeler faster, more efficiently, and more importantly—cheaper.
The small California outfit has partnered with China’s Launch Design, a design-for-manufacturing company established in 2000, which specializes in developing and delivering turnkey solutions for automakers around the world. With over 3,000 employees, Launch Design boasts that it has offered its services to brands like Tesla, Cadillac, Renault, BYD, and Chevrolet, having worked on over 400 vehicles since its inception.
Now, Launch Design will lend Aptera a hand. The partnership, valued at approximately $44 million (RMB 300 million), will offer the California startup access to Launch Design’s overseas pilot production facility, where the first units of the solar EV will be assembled. The Chinese company will also help Aptera develop the assembly fixtures and processes that will then be shipped to Carlsbad, California.
In other words, it sounds like the initial batch of solar EVs will be made in China, and once the processes are set in stone, assembly will move to California. The startup previously said that it has ordered the first 40 production bodies and chassis that will be used for the first batch of customer vehicles, which are expected to roll off the assembly line in the fourth quarter.
As part of the partnership, Aptera will pay two-thirds of approved program costs, while the remaining third, representing up to $15 million, will be paid by Launch Design in warrants to purchase Aptera stock. The Chinese company’s investment will cover things like assembly fixtures, tooling, vehicle testing, pilot production, and high-volume production work.
“This strategic investment enhances our resources, allowing us to bring proven design-for-manufacturing expertise and a global supply chain to Carlsbad without taking on the capital burden of building that expertise from scratch,” said Chris Anthony, Co-CEO of Aptera. “We expect Launch’s experience will shorten our path to high-volume production and reduce materials costs. We have already seen reductions in our projected bill of materials from the relationship, an early indication that the partnership is improving unit economics before the first production vehicle is built.”
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Source: Aptera
The California firm said it has been working with Launch Design for over a year. The partnership makes good use of Launch Design’s international supply chain, which allows Aptera to tap into affordable suppliers without doing the heavy lifting. The end goal is to make the solar-powered three-wheeler a sustainable business, and not just a showpiece, like many startups have ended up with.
Launch Design’s supply base can also deliver finished subassemblies directly to Aptera, instead of loose parts, making final assembly easier. With a big partner, Aptera can also expand production into other markets in the future.
