CNH Industrial has entered into a strategic and exclusive heavy-duty truck partnership with Nikola Corporation, based in Phoenix, Arizona.
CNH Industrial will take a $250m strategic stake in Nikola as the lead Series D investor. Pre-money valuation was set a $3bn. Nikola anticipates raising over $1nm in the D round, granting approximately 25% ownership to new investors and business partners, including CNHI.
The partnership will accelerate industry transformation towards emission neutrality of Class 8 / heavy duty trucks in North America and Europe through the adoption of fuel cell technology. Nikola’s heavy-duty trucks, powered by hydrogen fuel cell and battery technology, will be the first-to-production.
IVECO and FPT Industrial, the commercial vehicle and powertrain brands of CNH Industrial respectively, will assist in engineering and manufacturing expertise to industrialise Nikola’s fuel cell and battery electric trucks.
Nikola will contribute technologies for a European JV and CNH Industrial that will include fuel cell expertise, e-axles, inverters, independent suspension, on-board hydrogen fuel storage, over-the-air software update functionality, infotainment, vehicles controls, vehicle-to-state communication protocols, power electronics, and access to a hydrogen fuelling network.
Strategic near-term project milestones include the industrialisation of the Nikola TWO fuel cell-powered Class 8 truck for the North American market, as well as the integration of IVECO S-Way truck technology into the battery-electric powered Nikola TRE cab-over model for both the North American and European markets.
“The increasing focus on the recognition that there needs to be fundamental reductions in automotive emissions is driving our industry to rapidly seek advanced technology solutions,” said Hubertus Mühlhäuser, CEO of CNH Industrial.
“The time has come to finally provide a zero-emission solution to the heavy-duty truck market. While other OEMs believe zero emission solutions cannot happen in the timeframe regulators have mandated, Nikola, FPT Industrial and IVECO are proving that these timelines are not unreasonable,” said Trevor Milton, CEO at Nikola Corporation.