General Motors has formed a strategic partnership with up-and-coming electric truck manufacturer Nikola.
The automaker says Nikola will utilize its Ultium battery system and Hydrotec fuel cell technology in its future products, which will include the Badger electric pickup truck, NZT side-by-side and the One, Two and Tre semi-trucks.
Additionally, GM will engineer, validate, homologate and build the Nikola Badger pickup truck, while Nikola will be responsible for the sales and marketing of the vehicle and will retain the Nikola Badger brand. The Badger will be offered with both battery-electric and hydrogen-electric powertrains, so it will utilize both Ultium and Hydrotec technology.
Nikola, for its part, will exchange “$2 billion in newly issued common stock for the in-kind services and access to GM’s global safety-tested and validated parts and components,” the automaker said. The deal will help Nikola save over $4 billion in battery and powertrain costs over 10 years and over $1 billion in engineering and validation costs. GM is expecting to receive $4 billion in benefits from the deal thanks to the equity value of the shares, contract manufacturing of the Badger, supply contracts for batteries and fuel cells as well as any EV credits retained over the duration of the contract.
“This strategic partnership with Nikola, an industry leading disrupter, continues the