Nikola and GM Announce Wide Ranging Partnership
By Mike Osenga09 September 2020
Nikola Corp. and General Motors Co. have announced a strategic partnership that begins with the Nikola Badger (pictured) all-electric and hydrogen fuel cell pickup truck and is expected to drive cost reductions through Nikola’s programs, including the Badger, Nikola Tre, Nikola One, Nikola Two and NZT.
General Motors will be the exclusive supplier of fuel cells globally (outside of Europe) to Nikola for Class 7/8 trucks. General Motors will also engineer, homologate, validate, and manufacture the Nikola Badger pick-up truck battery electric and fuel cell versions.
The deal calls for General Motors to receive a $2 billion/11% equity stake in Nikola in exchange for certain in-kind contributions. In turn, Nikola anticipates saving over $4 billion in battery and powertrain costs over 10 years and over $1 billion in engineering and validation costs
General Motors said it expects to receive in excess of $4 billion of benefits between the equity value of the shares, contract manufacturing of the Badger, supply contracts for batteries and fuel cells, and EV credits retained over the life of the contract
Nikola will be responsible for the sales and marketing for the Badger and will retain the Nikola Badger brand. The Badger was first announced on Feb. 10, 2020 and will reportedly make its public debut in December. Badger production is expected to start in late 2022 at a location to be announced.
Nikola will remain an independent company. The investment is subject to customary antitrust regulatory approval and closing conditions. The parties anticipate closing the transaction prior to Sept. 30, 2020.
As part of the agreement, Nikola will utilize General Motors’ Ultium battery system and Hydrotec fuel cell technology, a key commercialization milestone for General Motors, the company said.
Read more about the deal at: https://newpowerprogress.com/nikola-and-gm-announce-wide-ranging-partnership/