General Motors announced a strategic partnership with the Nikola Electric Trucks and pickup truck startup. Under the signed agreement, General Motors will receive a $2 billion (11 percent) stake in the startup and produce a Nikola Badger pickup truck.
The Nikola Badger, which is due to begin production in 2022, will use General Motors’ Ultium battery system and Hydrotec fuel cell technology. In addition, the partnership stipulates that General Motors will exclusively supply fuel cells for future Nikola 7/8 class trucks.
Since the news was released, both companies’ shares have risen sharply. At pre-sales, Nikola shares rose 45 percent, while General Motors shares rose 11 percent.
In addition to the financial stake, General Motors also reserves the right to appoint one director to the Nikola board in exchange for its services. Mary Barra, CEO of General Motors, said the collaboration will help the company deploy its battery and fuel cell systems.
We are expanding our presence in several segments of mass electric vehicles, while also scaling up to reduce battery and fuel cell costs and improve profitability. In addition, General Motors’ application of electrified technology solutions to the heavy commercial vehicle class is another important step in realizing our vision for a zero emissions future. (Mary Barra)
By handing over General Motors, one of the world’s largest car manufacturers, this transaction will allow Nikola to enter the market faster.