The investment not only secures GM an 11 percent stake in Nikola, it sees the company take on all engineering and build work for the Badger, in both its battery and hydrogen fuel cell forms.
Nikola is an American company focused on zero-emission vehicles, and this deal sees the future of its forthcoming Badger electric pickup placed firmly in the hands of GM.
By doing this deal, Nikola expects to save $4 billion in battery and powertrain costs over the next 10 years, while also saving $1 billion in engineering and validation costs.
"By joining together, we get access to their validated parts for all of our programs, General Motors’ Ultium battery technology and a multi-billion dollar fuel cell program ready for production.
GM in return expects over $4 billion in benefits spread across equity value, contract manufacturing of the Badger, supply of batteries and fuel cells, and electric vehicle credits.
General Motors and Nikola Corp. have today announced they are combining forces, with GM investing $2 billion in Nikola in return for a number of "in-kind contributions".
Nikola immediately gets decades of supplier and manufacturing knowledge, validated and tested production-ready EV propulsion, world-class engineering and investor confidence.