Badger development shelved in new GM-Nikola MOU


Revised agreement comes after fraud allegations against Nikola

Badger development shelved in new GM-Nikola MOU
Doug Parks

 

General Motors (GM) has signed a global supply memorandum of understanding (MOU) with Nikola to provide its Hydrotec fuel cell system for Nikola’s Class 7/8 trucks.

The new non-binding MOU is a watered down version of the partnership outlined in September which included plans for a GM stake in Nikola and the development of the Badger ute.

Since then, Nikola has been beset by allegations that it exaggerated its capabilities, and subsequent resignation of founder and chairman Trevor Milton.


How the Nikola fraud allegations came to light, here


Under the new potential agreement, GM would engineer its Hydrotec fuel cell system to the specifications mutually agreed upon by both companies.

GM and Nikola will discuss the appropriate scope of services that GM would provide for the integration of the fuel cell system into Nikola’s vehicles.

It is expected that the potential arrangement would be cost plus, and that Nikola would pay upfront for the capital investment for the capacity.

GM and Nikola will also discuss the potential of a supply agreement for GM’s versatile Ultium battery system for Nikola’s Class 7/8 trucks.

"This supply agreement recognises our leading fuel cell technology expertise and development," GM executive vice president of global product development, purchasing and supply chain Doug Parks says.

"Providing our Hydrotec fuel cell systems to the heavy-duty class of commercial vehicles is an important part of our growth strategy and reinforces our commitment toward an all-electric, zero-emissions future."

American media reports note Nikola now doesn’t view the Badger as part of its core focus, with Nikola chief executive Mark Russell saying "it was difficult to make a business case for it".

GM’s Hydrotec fuel cell system will be engineered at its Michigan technical facilities and manufactured at its Brownstown Charter Township battery assembly plant.

 

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