General Motors and Nikola announced Tuesday that the two automakers will partner on future vehicles for both automakers, including a pickup truck powered by hydrogen or batteries.
That pickup, the Nikola Badger, will be unveiled later this year and GM will begin production of that truck in 2022, according to the companies. Nikola began taking reservations for the pickup in June for $100.
The partnership includes an agreement by Nikola to use GM's batteries and fuel-cell systems in future vehicles, including Nikola's hydrogen fuel-cell tractor-trailers, trucks, and off-road vehicles. Nikola says using GM's battery and hydrogen technology could save the company up to $4 billion over 10 years. Nikola will also have access to certain common components and safety systems already engineered by GM, which could save the startup up to $1 billion.
In turn, GM will receive an equity stake in Nikola valued at about $2 billion. The company also expects to make money by manufacturing the Badger and by selling batteries and fuel-cell systems to Nikola, which primarily focuses on commercial trucks powered by hydrogen fuel cells or batteries.
In a statement, both companies said the electric pickup will be sold and marketed by Nikola. GM announced this year that it will sell its own fully electric pickup, the GMC Hummer, but it's unclear if both will use a similar skeleton or be made in separate facilities.
"You couldn’t dream of a better partnership than this,” said Nikola founder and chairman Trevor Milton in a statement.
The two companies will remain separate, according to the deal.