General Motors taking $2 billion equity stake in Nikola

General Motors is taking a $2 billion equity stake in Nikola that will see it engineer and make the company’s Badger, a fully-electric and hydrogen fuel cell electric pickup truck.

Nikola will use GM’s Ultium battery system and Hydrotec fuel cell technology. The Badger is expected to be in production by the end of 2022. Nikola will be responsible for the sales and marketing of the Badger and keep the Nikola Badger brand.

GM will also be the exclusive supplier of fuel cells globally (outside of Europe) to Nikola for Class 7/8 trucks. It will receive 11% ownership of Nikola and the right to nominate one director to its board.

Nikola Corp. said today that it anticipates saving over $4 billion in battery and powertrain costs over 10 years and over $1 billion in engineering and validation costs.