Electrical-vehicle startup Arrival SA’s shares surged after it stated it is in talks to lift capital to construct and promote its merchandise within the U.S.

The corporate, which is primarily UK-based, additionally stated it is a step nearer to working so-called microfactories to provide battery-powered vans. The shares rose greater than 15 % in premarket U.S. buying and selling Friday morning.

Arrival stated it reached a key milestone Thursday with a primary manufacturing verification automobile accomplished at its Bicester facility. Denis Sverdlov, founder and chief government officer, says the step proves that the microfactory idea, utilizing autonomous robots as an alternative of a manufacturing line, works.

The subsequent step for Arrival is the U.S., the place President Joe Biden’s Inflation Discount Act presents large rebates on electrical vans. To money in on an anticipated surge of demand, Sverdlov says Arrival plans to construct a number of microfactories within the U.S. Nevertheless, it wants to lift capital for that — Sverdlov estimates the price of a plant at $50 million, with an additional $50 million wanted for working capital.

Arrival declined to touch upon how a lot capital it was looking for. It has a number of avenues, together with loans underneath the U.S. authorities’s Superior Know-how Automobiles Manufacturing Mortgage Program, strategic partnerships, and licensing its mental property, stated Avinash Rugoobur, Arrival’s president.

Sverdlov stated he wasn’t involved about curiosity dropping off resulting from current financial uncertainty the world over. Demand is many occasions greater than provide, with few to no opponents within the massive van house, he stated.

Arrival has an order from United Parcel Service Inc. to provide 10,000 vans, and Rugoobur stated the corporate will start street assessments with UPS in London shortly.

The corporate, which listed by way of a reverse merger with a particular objective acquisition firm, has seen its shares plunge 94 % within the final 12 months.

The inventory is at present buying and selling close to an all-time low, but Sverdlov says he does not remorse taking the corporate public.

“I cannot say we remorse this as a result of we raised $1.4 billion from the general public markets,” he stated. “Elevating that by means of the personal markets at the moment was nearly unattainable.”