General Motors has backed out of the joint venture with Nikola Corporation where it was supposed to acquire 11pc stake of the later and supply electric batteries and hydrogen cells for its Badger pickup truck.
According to media reports, the automotive giant backed out of the deal after Nikola’s founder, Trevor Milton, stepped down from the board after he was accused of fraud and exaggeration. GM was to supply its patented Ultium battery system and Hydrotec fuel cell for Nikola’s EV truck Badger. However, GM has not completely closed the deal with Nikola. The car maker recently announced a non-binding memorandum of understanding (MOU) with the EV producer to supply Hydrotec fuel cell system.
Under this MOU, Nikola will pay GM upfront for the capital investment and both companies will mutually decide the integration of fuel system into Nikola’s vehicles. GM will engineer the Hydrotec fuel system at its technical facilities in Pontiac and Warren, Michigan and produce it at its Brownstown Charter Township plant.