Alternative energy truck maker Nikola plans to build a 1mn sq ft facility in Phoenix, Arizona. The plant will produce 35,000 units of electric big rig trucks per year.
According to media reports, the company will begin manufacturing battery-powered trucks in late 2021, pushing back from the initial 2022 plan. The truck-maker will work with London-based CNH Industrial to gain technical expertise in production.
The company announced it will raise $600mn capex, needed to build the plant, and $900 cash-in-hand required from a reverse merger with its holding company Veltroq. In doing so, it will go public without the process of an initial public offering (IPO).
Trevor Milton, Nikola’s founder said that the market is transitioning to zero-emission vehicles and that the company needs to double down and speed up operations to meet the foreseeable demand for electric trucks, which the company specializes in.