General Motors is taking an 11 percent stake in electric truck maker Nikola, agreeing to build its hydrogen fuel cell electric pickup truck the Badger by the end of 2022.
Nikola’s shares surged by about 45 percent in premarket trading, while GM jumped by almost 9 percent.
GM is getting a $2 billion stake in Nikola in exchange for in-kind services and will become the exclusive supplier of fuel cells globally outside of Europe to Nikola for Class 7/8 truck.
“This strategic partnership with Nikola, an industry leading disrupter, continues the broader deployment of General Motors’ all-new Ultium battery and Hydrotec fuel cell systems,” GM CEO Mary Barra said in a statement.
Nikola founder and Executive Chairman Trevor Milton said the partnership gives Nikola access to GM’s validated parts as well as its Ultium battery technology and a multibillion dollar fuel cell program.
“Nikola immediately gets decades of supplier and manufacturing knowledge, validated and tested production-ready EV propulsion, world-class engineering and investor confidence,” Milton said in a statement. “Most importantly, General Motors has a vested interest to see Nikola succeed.”