Nikola Corporation continues to make market share gains with its electric semi-truck by brokering savvy deals.
After recently qualifying for a $120,000 California zero-emissions tax incentive for Nikola Tre BEV buyers, the outfit sealed a deal with Proterra to supply its battery systems. Prototype units are expected to arrive during the second quarter of 2022. Advanced production could take off by year’s end. Those are big gets for a relatively unproven battery-electric Class 8 semi-truck with a range of 300-500 miles.
Industry insiders initially operated under the idea Nikola planned to manufacture its battery systems in-house. While a handful have reportedly come off the assembly line, battery manufacturing remains a source of speculation. As Nikola gears up to secure an increased market share, the groundwork appears to be laid for mass production.
“With the growing demand for the Nikola Tre BEV and FCEV, we have actively pursued battery supply through a dual-source strategy,” Nikola CEO Mark Russell reportedly said. “We look forward to collaborating with Proterra, which is expected to bring industry-leading heavy-duty EV battery solutions to Nikola’s battery-electric and fuel cell electric vehicle platforms.”
Headquartered in Burlingame, California, Proterra produces battery systems for its own electric bus models. It does rely on battery cell suppliers such as LG Energy Solution. The good supply chains news on that front is that LG plans to establish a manufacturing plant in the U.S.
“Since 2016, Proterra and LG Energy Solution engineering teams have been collaborating to maximize cell performance to meet the stringent requirements of commercial vehicle markets,” LG reportedly stated. “The cylindrical cells to be manufactured at the new LG Energy Solution plant will feature a new, high nickel NMCA chemistry ideal for commercial vehicle and industrial applications.”
Strategists at Nikola have also been busy securing funding to make a Tesla-like push into the electric semi-truck sector. According to reports, Corcentric Fleet Funding Solutions penned a deal to facilitate Class 8 Nikola Tre BEV sales, as well as the Nikola Tre hydrogen fuel-cell models. Corcentric will reportedly purchase rigs and assets from Nikola to make direct customer sales and bundled lease options.
“We believe this partnership will allow Nikola to reach more customers by offering solutions to those who otherwise may not have access to financing options,” Nikola Chief Financial Officer Kim Brady reportedly said. “The agreement will provide Corcentric a launching point to expand its offerings into the electric vehicle space. Together we expect to provide funding resources, multiple options to tailor leases to customer needs, and best-in-class customer care for fleet customers and owner/operators.”
Interestingly, Nikola founder Trevor Milton agreed to pay a $125 million fine to the SEC in July based on allegations he overstated the quality of models and pushed disinformation on social media platforms.
Sources: insideevs.com, finance.yahoo.com, bloomberg.com
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