General Motors (GM) is shedding its equity stake in hydrogen, EV and truck start-up Nikola and won’t produce the Badger ute under a scaled down agreement between the two automotive firms.
Nikola says the signing of a “non-binding memorandum of understanding (MoU) with General Motors for a global supply agreement related to the integration of GM’s Hydrotec fuel-cell system into Nikola’s commercial semi-trucks” this week supersedes and replaces the transaction announced on September 8, 2020.
“The MoU does not include the previously contemplated GM equity stake in Nikola or development of the Nikola Badger.
“As previously announced, the Nikola Badger program was dependent on an OEM partnership.
“Nikola will refund all previously submitted order deposits for the Nikola Badger.”
GM and Nikola will work together to integrate GM’s Hydrotec fuel-cell technology into Nikola’s Class 7 and Class 8 zero-emission semi-trucks for the medium and long-haul trucking sectors, with prototypes expected to begin testing by the end of 2021.
“In addition, Nikola and GM will discuss the potential for the utilisation of GM’s versatile Ultium battery system in Nikola’s Class 7 and Class 8 vehicles,” Nikola says.
“Heavy trucks remain our core business and we are 100% focused on hitting our development milestones to bring clean hydrogen and battery-electric commercial trucks to market,” Nikola chief executive officer Mark Russell says.
“We believe fuel-cells will become increasingly important to the semi-truck market, as they are more efficient than gas or diesel and are lightweight compared to batteries for long hauls.”
TransportTalk has previously reported on Nikola and GM’s negotiations and Nikola’s founder Trevor Milton stepping down following fraud allegations.
News of the MoU agreement has seen Nikola share values fall, according to media reports.
GM also plans to produce its own electric utes, SUVs and cars, saying last month it aims to spend US$27 billion on EVs during the next five years.
