ARI Motors IndARI Motors Industustries SE and Faction Technology execute strategic term sheet – ARI increases stake to 40% and positions itself as key European partner for autonomous delivery vehicles

ARI Motors Industries SE and Faction Technology execute strategic term sheet – ARI increases stake to 40% and positions itself as key European partner for autonomous delivery vehicles

Borna near Leipzig, January 15, 2026 – ARI Motors Industries SE (“ARI”) has executed a strategic term sheet with Faction Technology, Inc. regarding the further development of the joint platform ARVIA SE.

The resulting structure creates a transatlantic autonomous delivery vehicle platform, combining European vehicle industrialization with proven U.S. autonomous driving technology – significantly expanding ARI’s strategic and economic positioning.

Improved structure: ARI increases equity stake from 25% to 40%

Compared to the memorandum of understanding published in November 2025, the structure of ARVIA SE has been streamlined. The joint venture will now consist exclusively of ARI and Faction.

As a result, ARI’s planned equity stake increases from 25% to 40% following Faction’s contribution of its operating assets and technology. Until completion of this contribution, ARI holds 100% of ARVIA SE.

Faction’s contribution is subject to a minimum funding threshold of EUR 8 million, representing a clearly defined value-creation trigger.

For ARI shareholders, this means:

A substantially larger participation in a platform with real customer programs and scalable revenue potential.

Operational execution begins – technology transfer and industrial scaling

The term sheet defines a clear operational roadmap:

• Transfer of autonomous hardware and software know-how from Faction to ARI
• Integration into ARI vehicle platforms
• Establishment of scalable European manufacturing and integration capabilities
• Gradual involvement of ARI in further software development and scaling

ARI contributes its core strengths in vehicle industrialization, customization, homologation, and international export logistics, with production in Germany and the Czech Republic.

First tangible scale-up: up to 200 vehicles – revenue exceeding EUR 5 million

Based on current planning, the partners expect the production and delivery of up to 200 autonomous delivery vehicles in 2026, manufactured by ARI for existing Faction customer programs in the United States.

The expected revenue volume from this initial production run exceeds EUR 5 million, marking the transition from development to commercial scaling.

Management statements

Thomas Kuwatsch, CFO of ARI Motors Industries SE:

“The revised structure significantly strengthens ARI’s position. The increased equity stake, operational execution and visible revenue outlook clearly demonstrate the scaling potential of this partnership.”

Ain McKendrick, CEO of Faction Technology, Inc.:

“ARI’s industrial, regulatory and software capabilities make it an ideal partner for scaling our autonomous technology into production-ready vehicles for global markets.”

Positioning ARI in one of the fastest-growing logistics segments

Autonomous delivery vehicles are widely regarded as a key efficiency driver in urban logistics.
Through ARVIA SE, ARI is positioning itself early as a core European partner in a rapidly expanding market driven by cost pressure, labor shortages and regulatory progress.

ARI Motors Industries SE considers the described developments to be potentially price-sensitive.

For further information, please contact:

ARI Motors Industries SE

Thomas Kuwatsch

Phone: 0049 341 978 569 33

E-Mail: invest@ari-motors.com

Internet: www.ari-motors.com