General Motors inks $2bn deal with startup Nikola

The automotive giant will take an 11% ownership stake in the startup Nikola and will build the firm’s new hydrogen and electric pickup truck

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General Motors (GM) has sealed a $2 billion (£1.5bn) electric vehicle (EV) partnership with startup Nikola.

Through the deal, GM will receive 11% ownership in the Arizona-based company and will build Nikola’s Badger hydrogen fuel cell and electric pickup truck.

Nikola will have access to GM’s battery system and hydrogen fuel cell technology and expects a saving of $4 billion (£3bn) in battery and powertrain costs over 10 years.

GM’s battery technology uses silicon and lithium metal anodes, which are thought to improve vehicle range and reduce costs.

GM Chairman and CEO Mary Barra, said: “We are growing our presence in multiple high-volume EV segments while building scale to lower battery and fuel cell costs and increase profitability.”

Nikola Founder and Executive Chairman Trevor Milton commented: “By joining together, we get access to their validated parts for all of our programs, General Motors’ Ultium battery technology and a multi-billion dollar fuel cell programme ready for production.”

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