Key points:
- Nikola enters battery partnership with industy-leader Proterra
- As the zero-emission landscape tightens, partnerships like this will prove critical to long-term sustainability
- Will Nikola be able to cement itself further as a leading competitor in BEV commerce?
Nikola (NASDAQ: NKLA) has been subject to more scrutiny than most other automobile companies pushing the zero-emission end-goal, and rightly so. Investors were cast into the cold following an SEC investigation into the company, with allegations of fraud limiting any short-term bullish sentiment.
However, in a promising move forward; Nikola has entered some serious partnerships recently that warrant investor attention. Today, Nikola entered a partnership with Proterra Inc – for the use of the company’s ‘industry-leading’ battery technology for powering Nikola’s BEV commercial trucks.
The battle for EV market share is becoming rife, and companies are honing in on the importance of long-term partnerships that offer sustainability and some degree of reassurance for investors. At a time when global shortages are tightening supply chains, forcing EV companies to struggle with chip limitations, such a battery partnership seems to stand out within an otherwise uncertain landscape.
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The Proterra battery technology will be used for Nikola BEVs and FCEV’s; of which the first are expected to reach production in the fourth quarter of 2022, following the delivery of prototypes in the second quarter. This seems positive, but delays seem to be a recurring feature of fledgling EV companies. As supply chain issues start to ease, it will be easier to analyze Nikola with a little more clarity.
Mark Russell, CEO of Nikola, commented on the partnership with Proterra:
“With the growing demand for the Nikola Tre BEV and FCEV, we have actively pursued battery supply through a dual-source strategy…We look forward to collaborating with Proterra, which is expected to bring industry-leading heavy-duty EV battery solutions to Nikola's battery-electric and fuel cell electric vehicle platforms.”
The market still appears hesitant on Nikola, with a clear lack of bullish support. Following last week’s news that Nikola trucks are now incentivized in California, this week’s further announcement is a promising continuation of a growth strategy that is not only visionary but fundamentally plausible.