Nikola, Proterra enter into battery supply deal for semi-trucks

CNH’s truck unit Iveco presents its new full-electric and hydrogen fuel-cell battery trucks in partnership with Nikola, at an event in Turin, Italy, December 2, 2019. REUTERS/Massimo Pinca

Jan 18 (Reuters) – Electric truck maker Nikola Corp (NKLA.O) said on Tuesday it has entered into a deal with Proterra Inc (PTRA.O) for the long term supply of batteries for its semi-trucks.

Nikola’s trucks fitted with Proterra’s batteries are expected to be produced in the fourth quarter of 2022 with prototypes systems being delivered to the truck maker in the second quarter, the company said.

Earlier in October 2021, Nikola said that it had entered into a long-term supply agreement with LG Energy Solution (373220.KS) for supply of batteries from 2022 through 2029.

“With the growing demand for the Nikola Tre BEV and FCEV, we have actively pursued battery supply through a dual source strategy,” Nikola’s Chief Executive Officer Mark Russell said in a statement on Tuesday.

Proterra, which makes batteries for commercial electric vehicles, said in December that it would open a new battery manufacturing factory in South Carolina as demand grows.

Nikola in the recent past has entered into Letters of Intent with logistics and trucking companies to sell hundreds of its Tre battery electric trucks and fuel cell trucks.

Reporting by Akash Sriram in Bengaluru; Editing by Shailesh Kuber

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