GM and Nikola sign US$2b deal for EV ute

General Motors has received a US$2 billion stake in Nikola Corporation and will help accelerate production and development of the hydrogen fuel cell and battery electric pickup truck (ute) the Badger by the end of 2022.

Under the deal, Nikola will utilise GMs’ newly developed Ultium battery system and Hydrotec fuel cell technology  while GM gains an 11% equity stake in the vehicle startup.

GM will “engineer, homologate, validate and manufacture” the Nikola Badger battery electric and fuel cell versions.

Nikola expects the partnership will save over US$4b in battery and powertrain costs over 10 years and more than US$1b in engineering and validation costs.

It’s hoped these cost reductions will carry through to Nikola’s other planned semi-truck variants including the Nikola Tre, Nikola One, Nikola Two and NZT

off-highway vehicle.

GM says it expects to receive more than US$4b 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.

Outside of Europe, GM will become the exclusive supplier of fuel cells globally to Nikola for class 7 and 8 trucks.

Nikola founder and executive chairman Trevor Milton says you “couldn’t dream of a better partnership than this”.

“By joining together, we get access to [GMs’] validated parts for all of our programs, General Motors’ Ultium battery technology and a multi-billion dollar fuel cell program ready for production.

“Nikola immediately gets decades of supplier and manufacturing knowledge, validated and tested production-ready EV propulsion, world-class engineering and investor confidence.

“Most importantly, General Motors has a vested interest to see Nikola succeed. We made three promises to our stakeholders and have now fulfilled two out of three promises ahead of schedule. What an exciting announcement,” Milton says.

General Motors chairman and chief executive Mary Barra says the strategic partnership continues the broader deployment of General Motors’ Ultium battery and Hydrotec fuel cell systems.

“We are growing our presence in multiple high-volume EV segments while building scale to lower battery and fuel cell costs and increase profitability.

“In addition, applying General Motors’ electrified technology solutions to the heavy-duty class of commercial vehicles is another important step in fulfilling our vision of a zero-emissions future,” Barra says.

GMs’ Ultium battery technology project includes silicon anodes and lithium metal anodes which will improve vehicle range, affordability, and reduced dependence on rare and costly metals, the company says.

It is already demonstrating automotive-grade durability and significantly higher energy density, it says.

Nikola will be responsible for the sales and marketing for the Badger and will retain the Nikola Badger brand. The vehicle was first announced in February this year and will make its public debut at Nikola World 2020 in Arizona from December 3-5.

The production location of the pickup truck will be announced at a later date. Nikola has also begun US$100 pre-order reservations for the Badger.