Hydrogen fuel-cell electric truck (FCET) maker Nikola Motor Corp. has entered a definitive agreement to merge with VectoIQ, a publicly-traded special purpose acquisition company.
Once closed, the new company will be called Nikola Corporation and use the NASDAQ ticker symbol NKLA, with an expected valuation of $3.3 billion.
Nikola founder and current CEO Trevor Milton will become executive chairman, with current president Mark Russell assuming the role of CEO, while VectoIQ CEO Stephen Girsky will remain on the board of directors.
“In our two-year quest to find a partner that was a proven technology leader and focused on making a global difference, Nikola was the clear winner,” said Girsky, a former vice chairman of General Motors. “Nikola’s vision of a zero-emission future and ability to execute were key drivers in our decision.”
Nikola is at the forefront of the hydrogen-powered trucks, which can have double the range of battery-electric trucks, and potentially better suited for long haul applications.
The upstart OEM plans to go into full-scale production of the Class 8 semi-truck Nikola Two as early as 2023 and recently announced the development of Nikola Badger pickup, which will be available as an FCEV or battery-electric vehicle (BEV).
“The world is transitioning to zero emission platforms…[and] we believe we have a differentiated business model built on economics, not government subsidies,” Milton said. “We now need to double down and speed up the timelines and get to market.”
Nikola’s business model includes supplying both the truck and hydrogen fueling infrastructure, solving the fleets’ concerns of where to refuel with green hydrogen at competitive pricing to diesel. Proceeds from the transaction will accelerate production, allowing Nikola to break ground on its manufacturing facility in Coolidge, Ariz., and begin rolling out its hydrogen station infrastructure.
Nikola said it has more than 14,000 pre-order leases to date, totaling $10 billion in potential revenue. Through a joint venture with European industrial vehicle manufacturer IVECO, they will also produce the cabover FCET Nikola TRE.
The company also has a prototype battery cell with “a record energy density of 1,100 watt-hours per kg on the material level and 500 watt-hours per kg on the production cell level,” which could reduce the weight by 40% and material cost by 50%.
Both VectoIQ and Nikola boards unanimously approved the deal. After stockholder approval and filing with the Securities and Exchange Commission, the deal can be completed, which is expected in Q2 of this year.
