CNH Industrial to lead NIKOLA’s Series D round with $250 million investment. Parties announce strategic partnership to industrialize fuelcell and battery electric heavy-duty trucks for North America and Europe

CNH Industrial, today announced its intention to enter into a strategic and exclusive Heavy-Duty Truck partnership with Nikola Corporation

CNH Industrial N.V. (NYSE: CNHI / MI: CNHI), today announced its intention to enter into a strategic and exclusive Heavy-Duty Truck partnership with Nikola Corporation, based in Phoenix, Arizona, U.S.A., to accelerate industry transformation towards emission neutrality of Class 8 / Heavy-Duty Trucks in North America and Europe through the adoption of fuelcell technology.

Nikola’s zero-emission Heavy Duty Trucks, powered by proprietary hydrogen fuel cell and battery technology, will be the first-to-production. The company’s disruptive business model foresees an industry-first ‘all-in’ lease rate, which includes vehicle, service, maintenance and fuel costs, providing long-term total cost of ownership certainty at or below diesel costs.

CNH Industrial will take a $250 million strategic stake in Nikola as the lead Series D investor, comprising $100 million cash and $150 million in services, such as product development, manufacturing engineering, and other technical assistance, as well as supply of certain key components to accelerate the production timeline of the Nikola TWO and Nikola TRE. Pre-money valuation was set at $3 billion. Nikola anticipates raising over $1 billion in the D round, granting approximately 25% ownership to new investors and business partners, including CNH Industrial.

IVECO and FPT Industrial, the commercial vehicle and powertrain brands of CNH Industrial respectively, will assist in engineering and manufacturing expertise to industrialize Nikola’s fuel-cell and battery electric trucks. The following vehicles will benefit from this partnership: the Nikola ONE, a NAFTA- compliant Class 8 sleeper truck; the Nikola TWO, a NAFTA compliant Class 8 day-cab truck; and the Nikola TRE, a European compliant cab-over Heavy-Duty Truck.

Nikola will contribute technologies for a European Joint Venture with CNH Industrial that will include class-leading fuel-cell expertise, e-axles, inverters, independent suspension, onboard hydrogen fuel storage, over-the-air software update functionality, infotainment, vehicle controls, vehicle-to-station communication protocols, power electronics, and access to a hydrogen fueling network.

Fuel-cell technology is the logical next step to liquefied natural gas (LNG) powered engines as it builds on existing refueling networks, enabling local on-site production of hydrogen. FPT Industrial has been at the forefront of alternative propulsion solutions for over two decades, having produced some 50,000 natural gas-powered engines to date. IVECO is the absolute European leader in natural gas vehicles, with some 28,000 of its trucks and buses powered by FPT Industrial engines.

FPT Industrial and IVECO have been instrumental in the development and expansion of Europe’s natural gas refueling network, in addition to successfully introducing new powertrain technology. Following a similar path, Nikola is actively working with partners to develop the required hydrogen refueling infrastructure in North America and Europe.

Please click here to view the full press release.

SOURCE: CNH Industrial

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