Nikola Hydrogen and Electric Trucks to Use LG Batteries

Nikola Electric Truck Tre BEV

[Asia Economy Reporter Choi Dae-yeol] Nikola, a U.S. developer and manufacturer of hydrogen fuel cell trucks, has agreed to receive batteries from LG Energy Solution. The company announced its third-quarter earnings on the 4th (local time) and stated, "We signed a long-term supply contract with LG Energy Solution on the 20th of last month," adding, "From next year until 2029, we will supply additional battery cells for our trucks."

Nikola gained fame for developing hydrogen fuel cell trucks, but it is also developing electric trucks. On the same day, the company said, "We are validating the Nikola Tre BEV to be able to operate on public roads by the end of this year," and "As of today, we have completed eight Gamma trucks and are working to deliver 25 trucks to dealers and customers by the end of the year."

The company did not disclose specific contract volumes or amounts. Nikola's electric truck factory is located in Coolidge, near Phoenix, Arizona. According to the company, it currently has the facilities to produce electric truck prototypes and plans to expand these facilities to establish an annual production system of 2,400 units by next year. It expects to proceed with a second phase of facility expansion, enabling an annual production capacity of 20,000 units by 2023. Hydrogen fuel cell trucks will also be produced at the same factory. LG currently operates a battery plant in Holland, Michigan, USA.

Meanwhile, regarding the fraud allegations that surfaced last year, the company expects a fine of approximately $125 million (about 148.2 billion KRW) based on the U.S. Securities and Exchange Commission's investigation results. The company plans to seek reimbursement from founder Trevor Milton for these costs and damages.

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