GM hasn't yet specified whether the Badger will use the same underpinnings as its own upcoming electric trucks, including the GMC Hummer EV and the yet-unnamed Chevrolet electric pickup. The Badger is expected to enter production by year-end 2022. Additionally, Nikola will hand over $2 billion in stock to GM - giving the automaker an 11% stake in the company.
GM stake would be locked up until 2025, the automaker said. "We're going to leverage that and really seize the opportunity that we have to grow", she said. In addition to the equity value of the shares, it will be paid to manufacture the Badger, supply batteries and begin commercializing fuel-cell technology for the semi-truck industry.
You might be wondering where Nikola expects its customers to purchase hydrogen to power the range extender on their trucks.More news: Man United ended Kai Havertz interest to focus on top transfer target
In that same year, GM announced plans to launch at least 20 electric models by 2023.
Nikola's stock jumped more than 50 per cent before the market open, while GM surged nearly 9 per cent.
The companies said that the first vehicle to result from the deal would begin with the Nikola Badger, a pickup created to be produced in both electric and fuel cell versions, entering production in 2022.
GM chairman and CEO Mary Barra said: "We're growing our presence in multiple high-volume EV segments while building scale to lower battery and fuel cell costs and increase profitability". GM also will get supply contracts for batteries and fuel cells and electric vehicle regulatory credits that can be used by GM to comply with fuel economy and pollution standards, or sold to other companies.More news: ORCA BABY: Researchers' first look at J57, newborn Southern Resident Killer Whale
GM and Nikola unveiled the deal just a week after GM and Honda said they have signed a memorandum of understanding to pursue a strategic partnership in North America. Nikola, however, will keep building a US factory in Coolidge, Arizona, to make heavy trucks.
Nikola meanwhile anticipates that it will save more than $4 billion in battery and powertrain costs over a 10 year period and over $1 billion in engineering and validation costs. Nikola's vehicles are primarily hydrogen fuel-cell-based, but the Badger pickup will be available in both FCEV and BEV variants. Image courtesy: GMIn one fell swoop, today's announcement elevates Nikola Motor to an entirely new level in the automotive space.
Nikola Corp., founded in 2015, became a public company in June after a merger with VectorIQ Acquisition Corp., a publicly traded special-purpose acquisition company.
Barra said that Girsky made initial introductions to help start the deal.More news: Twitter Reacts To Cardi B Ripping Into Candace Owens