The partnership inked between General Motors Co. and Nikola Corp. is a deal that nobody expected. Touted as Tesla's rival, Nikola had been trumpeting its battery and full cell technologies. But since the deal means Nikola's products will be using GM's battery and fuel cell (or versions of them), the startup might abandon its own technologies.
Nikola-Badged GM Trucks
In February, Nikola said its wants a partnership with an OEM to built its 600-mile Badger truck. It found that partner in GM. As part of the deal, GM will be engineering, homologating, validating and manufacturing the Badger, with the startup taking care of marketing and sales. The design is, of course, Nikola's.
This would repeat with Nikola's products such as the One, Two and Tre semi-trucks and the NZT off-highway vehicle. While the deal sees GM's parts and components in the Badger, more was included – GM's Ultium battery system and Hydrotec fuel cell technology. The Badger is brewing to be GM's hydrogen-powered truck but packaged and branded as a Nikola.
Deal To Save Money And Time
Nikola has been developing battery and fuel cell technologies for the Badger and its semi-trucks. In the Badger, Nikola wants to install its own 160-kWh flooded module lithium-ion battery and a 120-kW fuel cell. Nikola had said it has developed a new battery cell with double the energy density, nearly half the weight and half the cost of lithium-ion batteries found in Teslas. This claim remains to be proven, though, and doing so takes money and time.
Now, these systems would have to be set aside to pave the way for GM's Ultium and Hydrotec. Nikola is scheduled to unveil the Badger and its technologies in December 2020. With the deadline quickly approaching, it's understandable why Nikola has engaged GM beyond being a manufacturing partner – the deal simply saves the company a great deal of money and time.
Abandoning Own Technology?
With GM's systems underpinning Nikola's Badger and semi-trucks at least until 2025, the startup might have to completely abandon the development of its battery and fuel cell technologies. They seem to be a waste of money and moot as well.
Source: Nikola Motor