Nikola has formed a partnership with General Motors
General Motors will receive an 11% stake in the company as part of the agreement
Nikola has been somewhat of a hot topic in the EV world. The Arizona-based startup has brought a lot of controversy along with it, mostly spurred on by Tesla fanatics who have branded the company as 'vapourware' or tried to claim that Nikola's CEO is a budget brand Elon Musk. There's also all the uncertainty that comes with the company's huge investment into hydrogen, including helping to build a proper hydrogen infrastructure to help power their trucks and the forthcoming Badger pickup truck. Things have taken a bit of a turn very recently however as Nikola has taken on some serious investment from General Motors!
As part of the deal, General Motors will own an 11% stake in Nikola and GM personnel will be used to engineer, homologate and manufacture both versions of the Badger. The new partnership will also see cost reductions across Nikola's heavy-duty truck projects such as the One, Two, Tre and NZT thanks to Nikola now having access to GM's Ultium battery system and Hydrotec fuel-cell technology. The Ultium battery system is specifically designed to improve the affordability and range of EVs, whilst also creating batteries that are less reliant on the use of rare metals like most types of EV batteries are.
Nikola's Founder and Executive Chairman Trevor Milton is definitely very excited about this new partnership. "Nikola is one of the most innovative companies in the world. General Motors is one of the top engineering and manufacturing companies in the world. You couldn’t dream of a better partnership than this. By joining together, we get access to their validated parts for all of our programmes, GM’s Ultium battery technology and a multi-billion-dollar fuel cell programme ready for production. Most importantly, GM 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.”
Mary Barra, GM's Chairman and CEO, has also had positive words to say about the new partnership with Nikola. "This strategic partnership with Nikola, an industry leading disrupter continues the broader deployment of GM’s all new 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 cells costs and increase profitability. In addition, applying GM’s electrified technology solutions to the heavy-duty class of commercial vehicles is another important step in fulfilling our vision of a zero emissions future."
Time will tell whether the partnership between Nikola and General Motors will be successful. One thing is for certain, however; Tesla and Rivian could potentially have a pretty big fight on their hands in the emerging electric pickup market!