Workhorse Group has secured a $10 million agreement with Rhaelm Holdings to build a full-scale manufacturing prototype of its TerraPod modular data center at Workhorse’s Union City, Indiana, facility. The companies are also exploring a broader supply relationship, but that remains at the letter-of-intent stage and does not commit Rhaelm to buy TerraPod systems.
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Prototype funding: Rhaelm, a UK-based developer of sovereign AI infrastructure, is to pay Workhorse $10 million in three installments to build the TerraPod manufacturing-specification unit. The announcement does not specify the installment schedule or a completion date.
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Potential supply agreement: The companies intend to work toward a definitive supply agreement, which they are targeting to sign by Dec. 31, 2026. The proposed agreement would include joint engineering, prepayments tied to milestones toward a first order, and a right of first refusal for Workhorse to supply Rhaelm’s U.S. modular data center projects.
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Possible 150-system order: The letter of intent contemplates an initial order of 150 TerraPod systems, but it is contingent—not a firm purchase commitment. It depends on the parties signing the supply agreement, Rhaelm accepting the jointly developed platform, final documentation and Rhaelm’s internal approvals. The companies said there is no assurance that an agreement will be signed or that an order will follow.
What changes: The $10 million prototype agreement is the firm commercial commitment described. The broader opportunity—including potential prepayments and a 150-system order—depends on future negotiations and conditions being met. The announcement therefore establishes a paid development project, not a confirmed production contract or guaranteed sales volume.