Highlights

  • RHAELM agreed to pay Workhorse US$10 million to build a full-scale TerraPod Manufacturing spec unit in Indiana.
  • A non-binding letter of intent sets a path to a Supply agreement covering an initial 150 TerraPod systems.
  • Gateway Fleets placed a follow-on order for 200 W56 electric step vans, with deliveries starting in 2027.
  • Second-quarter 2026 Revenue reached US$3.6 million, while the net loss widened to US$20.2 million.

Electric truck maker Workhorse Group Inc. (NASDAQ:WKHS) has moved into modular artificial intelligence infrastructure, signing a US$10 million agreement with UK-based RHAELM on 29 October 2026. Under the Manufacturing Spec Unit Purchase Agreement, RHAELM, a London-headquartered developer of vertically integrated AI infrastructure, will pay Workhorse to build a full-scale TerraPod manufacturing spec unit at its Union City, Indiana facility.

TerraPod is the company's factory-built modular Data Center platform, combining compute, power distribution, cooling, communications, systems control and fire suppression in units produced on an assembly line rather than at a construction site. The spec unit will act as a physical reference for equipment fitment, service access and assembly sequence.

A Conditional Path From Spec Unit to Volume Orders

Alongside the purchase agreement, the two companies signed a non-binding letter of intent targeting a definitive supply agreement by 31 December 2026. The proposed agreement would include expanded joint engineering, milestone-based prepayments and a US right of first refusal for Workhorse to supply modular data center units for future RHAELM projects in the country.

An initial order of 150 TerraPod systems would follow once the supply agreement is signed and RHAELM accepts the co-developed platform, subject to definitive documentation and internal approvals. Workhorse also intends to become an official supply-chain provider for RHAELM's modular data center blueprint, which requires consent from RHAELM's consortium partners. No value for the potential 150-system order was disclosed.

Step Van Orders Extend the Core Vehicle Business

The data center push sits alongside Workhorse's electric commercial vehicle operations. On 30 September 2026, Gateway Fleets placed a follow-on purchase order for 200 W56 fully electric step vans through California dealer Kingsburg Truck Center, building on an earlier 2026 order for 100 units. Gateway plans to Lease the vans mainly to last-mile package delivery providers, with deliveries beginning in the second half of 2027 and continuing through 2028.

On 22 October 2026, the company also announced a Partnership with Tristan Fleet Management to sell and service W56 step vans in Canada. All W56 vans are built in Union City, which can produce more than 5,000 vehicles a year on a standard shift.

Financial Position and Upcoming Milestones

Workhorse completed its Merger with Motiv on 15 December 2025, with Motiv treated as the accounting acquirer. For the second quarter of 2026, revenue was US$3.6 million, the gross loss was US$7.5 million and the net loss was US$20.2 million, or US$1.86 per share, as the company delivered 26 vehicles. Cash stood at US$9.6 million at 30 June 2026, with US$30.0 million outstanding under a related-party Credit agreement.

Management expects to exit 2026 at a US$20 million annualized cost synergy run rate and believes TerraPod production could begin in late 2027 or early 2028. Third-quarter 2026 results are scheduled for release on 12 November 2026.