Workhorse Group Inc. (Nasdaq: WKHS) announced on October 28, 2026, that it has entered into a Manufacturing Spec Unit Purchase Agreement with Rhaelm Holdings Limited, a UK-based developer of sovereign AI infrastructure. Under the terms of the agreement, Rhaelm will pay Workhorse $10,000,000 over three installments to construct a full-scale TerraPod manufacturing spec unit at Workhorse's facility in Union City, Indiana.
The filing details a three-phase partnership structure. The initial phase involves building a reference unit to serve as a physical model for equipment fitment and assembly sequence. The second phase targets the execution of a definitive Supply Agreement by December 31, 2026. This agreement is expected to include joint engineering efforts, milestone-based prepayments for a first order, and a right of first refusal for Workhorse to supply modular data center units for all future Rhaelm projects in the United States.
The third phase involves a contingent initial order for 150 TerraPod systems, which is subject to the execution of the Supply Agreement, Rhaelm's acceptance of the co-developed platform, and required internal approvals. Workhorse stated that production of the TerraPod systems could begin as early as late 2027 or early 2028.
