- General Motors (NYSE:GM) and Nikola (NASDAQ:NKLA) are on watch after the companies signed a non-binding memorandum of understanding on a global supply agreement for GM to provide its Hydrotec fuel cell system for Nikola's Class 7/8 semi-trucks.
- Under the potential agreement referenced in the MoU, GM would engineer its Hydrotec fuel cell system to the specifications mutually agreed upon by both companies. In addition, 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 recognizes our leading fuel cell technology expertise and development," says GM exec Doug Parks.
- "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," he adds.
- The deal is smaller in scope than was originally planned.
- GM +0.46% premarket to $45.21. Nikola is -0.95% to $27.56.
- Source: Press Release
- Nikola was one of the stocks mentioned in Seeking Alpha's Catalyst Watch.