Nikola to acquire Romeo Power
By Bradley Osborne - 3rd August 2022
USA – Nikola Corporation, a designer of zero-emission vehicle concepts based in Phoenix, Arizona, has announced it will acquire battery manufacturer Romeo Power Inc of Cypress, California, meaning that Nikola will eventually be able to bring battery development and production for its electric trucks in-house.
Nikola believes that, by securing control over the battery pack engineering and production process, it will be able to accelerate the rollout of its Class 8 electric trucks and bring down costs. It expects all non-cell related battery pack expenses to fall by 30-40% by the end of 2023 as a direct result of the acquisition; by 2026, Nikola hopes to achieve annual savings of up to USD350m. The company has stated, however, that it is still committed to a “dual-source” supply for battery packs: it already has agreements in place with Proterra and LG Energy Solution.
