Nikola Corporation and General Motors (GM) have entered an agreement wherein the latter will acquire an 11pc stake in the electric vehicle (EV) manufacturer.
Under the agreement, Nikola will use GM’s Ultium battery system and Hydrotec fuel cell technology for its Nikola Badger EV trucks and will be responsible for the sales and marketing of the model. GM will engineer and manufacture Nikola Badger’s both battery and fuel cell versions which are expected to enter production by the end of 2022.
The partnership is intended to save over $4bn in battery and powertrain costs for Nikola over 10 years and close to $1bn in engineering and marketing costs. On the other hand, GM will receive supply contracts for batteries and fuel cells, as well as EV credits during the contract period. Overall, the American carmaker will receive benefits worth $4bn through this contract.