Life EV acquires Rad Power Bikes for $13.2 million, vows U.S. assembly shift

Life Electric Vehicles Holdings has completed a court-approved acquisition of Rad Power Bikes’ brand, intellectual property, inventory and certain operating assets, paying $13.2 million after winning a Jan. 22 auction. Life EV said it will continue to operate the Rad Power Bikes brand in the United States, support existing riders through post-closing programs and move more production toward U.S.-based assembly using a Foreign Trade Zone structure.

The sale closes a rapid collapse for a company that once dominated the North American e-bike boom. Rad, founded in 2015, saw demand surge nearly 300 percent during the pandemic, raised more than $300 million in 2021 and reached a peak valuation of about $1.65 billion. Despite that growth, Rad filed for Chapter 11 after the U.S. Consumer Product Safety Commission warned customers to "immediately stop using" some of its e-bike batteries because of a "serious fire hazard." Rad had said it could not afford to recall the at-risk batteries.

Rob Provost, chief executive of Life EV, framed the purchase as both preservation and a relaunch. "Rad Power Bikes has helped define the e-bike category in North America with its innovative products and passionate rider community," he said. "Respecting and preserving that legacy - its brand, vision, and leadership - is foundational to this acquisition. Together, we will build on that trust and create new opportunities for riders nationwide."

Life EV, headquartered in Deerfield Beach, Florida and founded in 2018, operates a 31,000-square-foot production headquarters where it assembles globally sourced bike components. The company has expanded by acquisition in recent months, including the November 2023 purchase of Serial 1, Harley-Davidson’s in-house electric bicycle line. Life EV described its plans for Rad as an "integrated manufacturing approach" aimed at "scalable operations, bringing component sourcing, assembly, quality control, inventory management, and distribution together through the broader Life EV platform."

The buyer said adopting an FTZ structure would let it combine global component sourcing with domestic assembly while improving supply chain visibility, quality control and tariff management. Life EV also reiterated that it "intends to support Rad riders through post-closing customer programs, including honoring certain warranties and gift cards in accordance with the terms of the asset purchase agreement."

Rad still maintains seven U.S. retail stores that Life EV said it will continue to operate: the Ballard flagship in Seattle plus locations in Berkeley, Huntington Beach, Santa Barbara, San Diego, Denver and Salt Lake City. Beyond that list, the transaction leaves many practical questions unanswered for customers, employees and creditors.

Key details have not been disclosed publicly. The specific battery models that prompted the CPSC warning, the precise warranties and gift card terms Life EV will honor, the timeline and locations for the planned U.S. assembly transition, and whether Seattle engineering or assembly facilities will remain open are all unspecified. The asset purchase agreement has not been released, so it is unclear what liabilities, if any, Life EV assumed beyond its customer-support commitments.

For Rad owners and dealers, immediate priorities include clear instructions on battery safety, the mechanics of warranty and gift card claims, and the future of service and parts. Life EV’s purchase revives a once-dominant brand for a fraction of its former valuation and sets a test case for whether domestic assembly under an FTZ model can restore confidence and profitability in a battered e-bike market.