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GM Will No Longer Produce Nikola Badger EV Pickup Truck

General Motors and Nikola have signed a new non-binding memorandum of understanding that will see the automaker supply the start-up with hydrogen fuel cell technology only.

The two companies entered a strategic partnership in September in which GM would receive a $2 billion equity stake in Nikola in exchange for engineering and producing the Nikola Badger electric pickup truck. The partnership would have also seen GM supply Nikola with both battery electric and hydrogen fuel cell tech for its Class 7 and Class 8 semi-trucks.

This deal fell through after a short-seller accused Nikola of being an “intricate fraud,” which eventually also led to the resignation of company founder and CEO Trevor Milton. Despite the controversy surrounding the company, GM indicated it was still interested in forming some sort of partnership with Nikola and remained in discussion with the Ohio-based company.

Now, according to Reuters, GM and Nikola have signed a new non-binding agreement in which GM will only supply hydrogen fuel cell technology for Nikola to use in its Class 7 and 8 semi-trucks. Nikola may also use GM’s Ultium batteries in its electric trucks going forward, though the two companies are still discussing this potential part of the deal.

Nikola plans to refund all pre-order deposits that customers placed for the Badger pickup truck, as the vehicle’s arrival hinged on it reaching a partnership with a major manufacturer GM. Nikola CEO Mark Russel told Reuters that heavy commercial trucks like the Nikola One and Two are the company’s “core business,” at the moment and that it remains “100% focused on hitting our development milestones to bring clean hydrogen and battery-electric commercial trucks to market.”

The Hydrotec system that GM will supply to Nikola, which was developed in partnership with Japanese manufacturer Honda, will be manufactured at the automaker’s Brownstown Township battery plant in Michigan. The Browntown plant currently makes lithium-ion battery packs for the Chevy Bolt EV.

GM believes hydrogen fuel cells will become “increasingly important to the semi-truck market,” in the coming years as they are more efficient than gas or diesel powertrains and better for the environment. The automaker also says that it sees “additional growth opportunities in multiple transportations, stationary and mobile-power end markets,” with regard to hydrogen fuel cell tech, which will help it to further commercialize the technology and receive more returns on its fuel cell investments.

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Sam loves to write and has a passion for auto racing, karting and performance driving of all types.

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Comments

  1. This is a case of where GM is looking to sell tech to others. They will have to use care as many of these companies will never get to production and even if they do they will not survive.

    Those that will have the best shot will be those in specialty segments if they get their products right.

    EV models will be like the early years of ICE. Everyone wanted to make a car but 90% of the many companies failed, merged of were bought out. There is only so much room in the market.

    Reply
    1. do you think they took care when vetting this company?

      one of the reported reason for this deal was EV credits. if biden opens up the ev stimulus spigot and gm can take advantage of the $7500 tax credit again, they’ll sell more ev’s and those nikola credits are less valuable and maybe even worthless.

      Reply
      1. There is a lot of deals being cut and will be cut for a number of reasons. We may learn some but many will never made public.

        All of them have foots in saving or making money or in some cases a company surviving.

        GM I am sure vetted them but were they fully honest in their disclosures? This trouble could all stem what GM may have found out. If they did they would not go public with it.

        Reply
  2. I still can’t figure out why anyone wants anything to do with this joke of a company unless it’s to skirt past regulation (GM building a GM vehicle but not averaging in to all the government standards for large automakers).

    Nikolas been around for awhile, claiming they were developing hydrogen and battery tech. Then now they sign a deal to use wholesale gm hydrogen and battery tech? So what have they done in the last many years? Sketched out a pickup that’s a hodgepodge of every other brand and a semi that looks like Megatron. I can sketch a vehicle out on Paint, will GM pay to engineer, build and sell it for me and pass along some profit?

    Reply
  3. In other words the agreement with Nikola did not have proper due diligence and GM is using the fig leaf of “technology sharing” for to wipe the egg off its face. Nikola is more or less a dying entity now.

    Reply
  4. The thread title would seem to imply that GM has been, or currently does, build the Badger.

    Reply
  5. i believe Mark Russell, the new CEO, who took control of Nikola in September; has now focused this company in the right direction. They need more of a direct focus and that’s what this new deal suggest that they will be doing. Their objective will be to produce Semi’s and 2 factories are being built for this product line. GM will be one of their major suppliers. Russell also seems to have a better relationship with their key investors and suppliers.

    Reply
  6. It’s hard to produce vaporware!!!

    Reply

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