Bankrupt business EV startup Arrival has bought a few of its belongings, together with superior manufacturing gear to Canoo, one other struggling startup making an attempt to construct and promote electrical autos.

The acquisition, which was touted as a cost-saving measure that may scale back capital expenditures by 20%, comes as Canoo struggles to maneuver past prototypes towards business manufacturing. Canoo mentioned the bought belongings, packed into greater than 20 container ships, shall be despatched to the corporate’s facility in Oklahoma. The corporate beforehand acquired the entire new, and “like-new” belongings owned by Arrival’s enterprise unit in the US. It’s unclear if Canoo additionally acquired any of Arrival’s IP.

Canoo didn’t reply to a request for remark.

Arrival introduced in January that it deliberate to dump belongings and IP from its U.Okay. division after submitting for chapter safety within the U.Okay. Arrival, as soon as valued at greater than $13 billion and backed by Hyundai and UPS, claimed it was going to revolutionize the manufacturing of electrical autos by constructing them in compact “microfactories” that might be situated in metropolis facilities.

These plans, which included an electrical bus, vans and even a purpose-built automotive for Uber, fell aside because it burned by means of money and a variety of executives. Arrival restructured not less than 3 times — in every occasion, shedding employees — and shifted its focus to the US and away from the U.Okay. market to protect capital. Arrival by no means produced any business autos at scale and its market valuation is now round $7.7 million. After years of volatility and a share worth that misplaced practically all of its worth, the corporate filed for chapter.

Canoo, in the meantime, has had its personal struggles. After going public through a merger with a particular function acquisition firm, the corporate struggled to supply its EV, an attention-grabbing design based mostly on a “skateboard” structure that homes the batteries and the electrical drivetrain in a chassis beneath the car’s cabin.

Canoo beforehand reported it has greater than $1 billion in its gross sales pipeline, a determine largely attributable to a take care of Walmart to buy 4,500 items, with an choice to purchase as much as 10,000 items. Nonetheless, the corporate has struggled to transform these gross sales into deliveries.

Canoo is actually a pre-revenue firm burning by means of money and has needed to revert to inventory splits and issuing extra shares to remain afloat. Final yr, the corporate moved to a distinct tier within the Nasdaq Alternate after its inventory worth languished under $1 and triggered a delisting discover.