Cenntro expanding scope of vehicle plant in Jacksonville 

Cenntro expanding scope of vehicle plant in Jacksonville (Courtesy of the Jacksonville Daily Record) — Cenntro Electric Group Ltd. hasn’t begun assembling electric vehicles in its Jacksonville plant, but it already is expanding the scope of the facility as it deals with supply chain issues.

“We’re going to continue to develop a supply chain source in our local markets,” CEO Peter Wang said in an April 25 conference call with analysts.

“That means, in the near future, we are going to pack our battery in Jacksonville, in our own facility,” he said.

Cenntro makes light and medium-duty electric vehicles for corporate and governmental uses.

The New Jersey-based company said in December it would open its first U.S. assembly plant for the vehicles in Jacksonville, with the help of $450,000 in tax incentives approved by City Council.

Two weeks later, Cenntro became public by merging with an existing public company. 

In its first financial report since going public, the company said it sold 918 vehicles and produced revenue of $8.6 million in 2021.

The company has ambitious growth plans, including the opening of its Jacksonville plant.

According to its annual report, Cenntro signed a 10-year lease for about 100,000 square feet at the Lane Industrial Park on Jacksonville’s Westside.

The report said the company expects to begin “trial assembling operations” at the plant by the end of the second quarter and projects eventually to produce at least 10,000 vehicles a year there.

During the conference call, Wang expressed optimism about the company’s growth but said the global supply chain is a concern.

“As demand for our vehicle remains very strong, our priority is to overcome the challenges of the supply chain crisis, ramping up the production to expand our market share,” he said.

“The chip supply and the battery is our main issue, and also the shipping and the internal lockdown because most of our current supply chain is made in China.”

According to its annual report, its solution to the problem is a “merge in transit” model in which components of batteries and other parts are shipped to local facilities for assembly.

“As our Jacksonville facility is operational, we are going to pack our batteries in the United States,” Wang said.

Photo courtesy of PR Wire