Universal Logistics Holdings (NASDAQ:ULH) has entered into a significant agreement with Ford Motor Company involving a new warehouse and distribution facility.

This facility, located in Stanton, Tennessee, is expected to span approximately 1 million square feet and will support Ford’s production of its next-generation electric truck.

Under the terms of the agreement, ULH’s subsidiary, Universal Development of Tennessee, will lease land from Ford, construct the facility to Ford’s specifications, and substantially complete the project by January 1, 2025.

Over a 10-year term, Ford will pay a monthly base amount estimated at $2,418,806 plus applicable taxes, utilities, and charges.

Additionally, ULH is set to indemnify Ford against losses or damages resulting from bankruptcy, insolvency, or reorganization events concerning its subsidiary involved in the project.

The agreement includes provisions for insurance, indemnification, and remedies in the event of default.

Although the agreements are currently held in escrow, pending governmental approvals, Universal Development of Tennessee has already initiated work on the project.