General Motors is teaming up an electric truck startup Nikola to engineer and build the Badger pickup. They made the relevant announcement yesterday.
The Badger will receive the same Ultium batteries that Honda plans to use in its electric vehicles, or which will be mounted in the forthcoming electric Hummer.
Furthermore, General Motors will supply Nikola Corp. its Hydrotec fuel-cell technology to bring Class 7 and Class 8 commercial trucks to market.
As a compensation, the Detroit-based manufacturer receives an 11 percent ownership stake in Nikola, worth $2 billion. In addition to the equity stake, GM will be paid for building the Badger, supply of batteries, commercialization of fuel-cell tech.
According to the agreement between the two, General Motors will get 80 percent of EV regulatory credits generated from the Nicola Badger sales, and has a right of first refusal of the first 20 percent.
GM believes it will gain more than $4 billion in benefits from this agreement. Nikola Corp. reckons the partnership will give it a boost of legitimacy. The company has yet to generate any meaningful revenue.
The Nikola Badger should go into production in late 2022. The company’s chairman Trevor Milton says the model will cost between $60,000-$90,000.
This could be a profitable niche in the larger U.S. pickup market, according to estimates. Mr. Milton hopes the Badger will one day rival America’s bestseller – the Ford F-150.
Source: Bloomberg, Car and Driver