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SHARE BASED PAYMENTS (Tables)
 12 Months Ended
Dec. 31, 2021
Share Based Payments [Abstract]  
Summary of Number of The Share Options
In thousandsCurrencyAverage exercise price per share optionNumber of optionsAverage exercise price per share optionNumber of options
2021202120202020
Outstanding at the beginning of the yearEUR3.41 26,890 — 
Granted during the yearEUR— 3.4126,890 
Adjustment on the number of options*(11,877)— 
Exercised during the yearUSD7.195 (204)— 
Expired during the year— — 
Forfeited during the yearUSD7.195 (926)— 
Outstanding at the end of the year13,883 26,890 
Exercisable at the end of the year— 7,284 — 

* Following the reverse merger, the options of the employees of the Group to acquire shares of Arrival Luxembourg
S.à r.l.have been transferred to Arrival. As mentioned in note 13, due to the difference of the nominal value of the shares and to facilitate the reverse merge transaction, the options, similarly as with the shares exchanged, have been adjusted by applying a ratio of 55.8%.
Summary of Weighted Average Exercise Prices And Contractual Life of the Share Options
Share option outstanding at the end of the year have the following expiry dates and exercise prices:

Grant dateExpiry dateExercise priceNumber of share options December 31, 2021 (thousand)Number of share options December 31, 2020 (thousand)
20212020
October 2020October 2030USD7.20EUR3.4113,88326,890
Summary of inclusions of Model Inputs For Options Granted
The model inputs for options granted in 2020 included:
InputIPODelayed exitJustification
Valuation dateOctober 2, 2020October 2, 2020This is the date that the option scheme was communicated to the employees and the date that management has made an estimation of the valuation of the scheme. Given the short time elapsed between the valuation date and the date that the actual agreements were signed management does not consider there to be any material change in value across the valuation date and the date the agreements have been signed (grant date).
Risk free rate0 %0 %
Risk free rates are taken from yields on UK government bonds for corresponding periods to the exit dates for each valuation event. Rates are linearly interpolated from yields for bonds with the closest available maturities. Where negative, rates have been capped at 0%.
Dividend yield— — No dividend is anticipated to be paid prior to an exit event. SOPs are not entitled to dividends but RSPs are.
Expected volatility146 %102 %Based on the average observed volatility in the equity value of listed comparable companies over a historic period commensurate with the expected exit date
Expected exit eventJanuary 31, 2021January 1, 2022Estimation as to when the exit event will occur
Scenario weighting75 %25 %
This is the expected likelihood of the different exit routes as at the grant dates. We have assumed a one-year delay if the exit does not occur in early 2021.
Summary of Fair Value Inputs
The following inputs have been included in determining the fair values:

InputPre-ModificationPost-Modification
Time-vesting SOPProduction milestoneContribution milestoneTime-vesting SOPProduction milestoneContribution milestone
Valuation dateAugust 27, 2021August 27, 2021August 27, 2021August 27, 2021August 27, 2021August 27, 2021
Share price (USD)11.13 11.13 11.13 11.13 11.13 11.13 
FX rate EUR/USD0.85 0.85 0.85 n.an.an.a
Share price (EUR)9.47 9.47 9.47 n.an.an.a
US risk free rate— %— %— %0.05 %0.12 %0.16 %
Germany risk free rate(0.68)%(0.69)%(0.70)%— %— %— %
Dividend yield— %— %— %— %— %— %
Expected volatility70 %120 %119 %70 %120 %119 %
Expected exit event*November 14, 2021December 31, 2022March 31, 2023November 14, 2021December 31, 2022March 31, 2023
*Expected exit event is the estimated date that Arrival's employees could trade their options and/or the date that their options vest.