GM takes 11% ownership stake in Nikola with $2 billion deal

According to Bloomberg, General Motors (GM) has announced a strategic partnership with Nikola Corporation, which includes taking an ownership stake in the electric truck startup through a $2 billion deal. As part of this agreement, GM will receive an 11% equity stake in Nikola, positioning itself as a key player in the development and production of Nikola’s electric and hydrogen fuel cell vehicles.

Under the terms of the deal, GM will manufacture Nikola’s Badger electric pickup truck, which is expected to combine both battery-electric and hydrogen fuel cell powertrains. This collaboration will leverage GM’s Ultium battery technology and Hydrotec fuel cell system, allowing Nikola to benefit from GM’s extensive experience in vehicle manufacturing and advanced propulsion systems.

The partnership provides Nikola with significant cost savings, as GM’s established supply chain and manufacturing expertise will help reduce production expenses and accelerate the timeline for bringing the Badger to market. For GM, the deal represents an opportunity to expand its presence in the growing electric vehicle (EV) market and to capitalize on Nikola’s innovative approach to zero-emission transportation.

In addition to the manufacturing of the Badger, GM will also serve as a key supplier of batteries and fuel cells for Nikola’s commercial vehicles, including its lineup of hydrogen fuel cell-powered semi-trucks. This aspect of the deal underscores GM’s commitment to advancing its electric and hydrogen technologies while broadening its role in the global shift toward sustainable transportation solutions.

The agreement with Nikola also grants GM the potential to benefit financially from Nikola’s future success, as the automaker will receive $2 billion in newly issued Nikola stock in exchange for its manufacturing and technology contributions.

This partnership is a significant development for both companies, as it aligns with the broader industry trend toward electrification and positions both GM and Nikola to capitalize on the growing demand for electric and hydrogen-powered vehicles. As the partnership moves forward, both companies will focus on executing their shared vision of advancing the future of transportation through innovative and sustainable technologies.