Under a new non-binding Memorandum of Understanding (MoU) between Nikola Corp. and General Motors signed Nov. 30, the two companies are altering the scope of their previous strategic partnership announced on Sept. 8. Two days after the previous deal was signed, a damaging report surfaced alleging Nikola of fraud and the partnership has been in question ever since.
Under the MoU’s terms, the focus will be squarely on integrating GM’s Hydrotec fuel cells into Nikola’s Class 7 and 8 trucks. If the new plan is realized, GM and Nikola will mutually agree on the fuel cell system specifications and Nikola will pay for any capacity capital investments upfront. Originally, GM was to receive an 11% stake in Nikola for its overall contributions. This included GM supplying Hydrotec fuel cells and Ultium batteries for Nikola’s battery-electric trucks, as well as system and chassis validation. Discussions will continue on whether Nikola trucks will use GM’s battery powertrain.
"This supply agreement recognizes our leading fuel cell technology expertise and development," said Doug Parks, GM executive vice president of Global Product Development, Purchasing and Supply Chain. "Providing our Hydrotec fuel cell systems to the heavy-duty class of commercial vehicles is an important part of our growth strategy and reinforces our commitment toward an all-electric, zero-emissions future."
Nikola said production-engineered prototypes of its hydrogen-powered trucks will roll out in late 2021 with beta testing to commence in 2022. Production on the Nikola Tre battery-electric truck in Germany in conjunction with IVECO is also planned for late 2021.
“We are excited to take this important step with GM, which provides an opportunity to leverage the resources, strengths and talent of both companies,” Nikola CEO Mark Russell said. “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. 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. By working with GM, we are reinforcing our companies’ shared commitment to a zero-emission future.”