USA - Nikola Corporation of Phoenix, Arizona and General Motors Co of Detroit, Michigan,  have entered a strategic partnership designed to commercialise production of electric vehicles. The programme starts with GM agreeing to produce the Nikola Badger (electric pick-up truck) and carries cost reductions through Nikola’s heavy truck programmes, including Nikola Tre, Nikola One, Nikola Two and NZT. Under the agreement, Nikola is to utilise General Motors’ Ultium battery system and Hydrotec fuel cell technology, representing a key commercialisation milestone for General Motors.

Nikola will exchange USD2bn in newly issued common stock for in-kind services and access to General Motors’ globally safety-tested and validated parts and components. General Motors will be subject to a staged lock-up provision beginning in one year and ending in June 2025. General Motors will engineer, homologate, validate and manufacture the Nikola Badger battery electric and fuel cell versions. Nikola anticipates saving over USD4bn in battery and powertrain costs over 10 years and over USD1bn in engineering and validation costs. General Motors expects to receive more than USD4bn 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.