Nikola and Bosch Hydrogen Fuel Cell Deal | Hydrogen Technology

Nikola Corp. and Bosch Strengthen Hydrogen Fuel Cell Partnership

Nikola Corp., the electric truck manufacturer facing challenges, has formalized a new agreement with Bosch concerning hydrogen fuel cell modules. These modules are designated for integration into two of Nikola’s hydrogen-powered heavy-duty trucks: the Nikola Tre, designed for short-haul routes, and the long-haul Nikola Two sleeper model.

A Renewed Commitment

According to a statement released by Nikola CEO Mark Russell, this agreement represents the culmination of several years of collaborative effort with Bosch. Russell emphasized that after a thorough evaluation of available options, Nikola is pleased to solidify this strategic alliance.

The partnership’s evolution hasn’t been without its complexities. Bosch initially invested at least $100 million in Nikola in 2019, but subsequently reduced its stake in the company the following year.

Expanding Production Capabilities

Nikola has chosen not to disclose the financial specifics of the agreement, nor the projected volume of fuel cell systems. The company will be responsible for assembling the hydrogen fuel cell power modules at its Coolidge, Arizona facility.

Bosch will also provide fully assembled power modules, as stated in a company release on Thursday. To accommodate the increased assembly workload, Nikola plans to expand its Arizona facility by 50,000 square feet and add up to 50 new personnel by 2023.

Furthermore, the truck manufacturer intends to broaden its engineering and testing capabilities at its headquarters located in Phoenix, Arizona.

Maintaining Supplier Diversity

A Nikola representative clarified that this new agreement will not impact existing relationships with other suppliers of fuel cell systems and components. This includes a non-binding Memorandum of Understanding (MOU) with General Motors for their Hydrotec fuel cell system, announced in November of the previous year.

Production Outlook and Legal Matters

Nikola became a publicly traded company through a merger with VectoIQ Acquisition Corp. Recently, the company revised its delivery projections for electric semi-trucks, lowering the expected range from 50 to 100 units to just 25 to 50.

Despite the reduced outlook, Nikola reports the completion of 14 pre-production vehicles, comprising five alpha and nine beta prototypes.

Separately, Nikola’s former CEO and founder, Trevor Milton, has committed to remaining at his Utah ranch pending trial on charges of securities fraud and investor deception.

Key Takeaways

• Nikola and Bosch are deepening their collaboration on hydrogen fuel cell technology.
• The agreement will support production of the Nikola Tre and Nikola Two trucks.
• Nikola is expanding its Arizona facilities to meet increased demand.
• The company maintains relationships with multiple fuel cell suppliers.