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GM Signs MoU To Supply Hydrotec Fuel Cell Systems For Nikola's Commercial Semi-trucks

General Motors Co. (GM) signed a non-binding memorandum of understanding with U.S. electric truck maker Nikola Corp. (NKLA) for a global supply agreement to provide its Hydrotec fuel cell system for Nikola's Class 7/8 semi-trucks, the companies said in a statement on Monday. The MoU replaces the previous transaction announced September 8.

In Monday pre-market trade, NKLA was trading at $22.86, down $5.07 or 18.15 percent.

General Motors said in September that it would take a $2 billion stake in Nikola. GM would receive an 11 percent ownership of Nikola as well as the right to nominate one director. GM would manufacture Nikola Badger, a fully-electric and hydrogen fuel cell electric pickup truck.

GM said Monday that it would engineer its Hydrotec fuel cell system to the specifications mutually agreed upon by both companies.

Nikola noted that the MOU does not include the previously contemplated GM equity stake in Nikola or development of the Nikola Badger.

GM and Nikola will discuss the appropriate scope of services that GM would provide for the integration of the fuel cell system into Nikola's vehicles, the companies said.

GM expects that the potential arrangement would be cost plus, and that Nikola would pay upfront for the capital investment for the capacity.

The companies will also discuss the potential of a supply agreement for GM's versatile Ultium battery system for Nikola's Class 7/8 trucks.

GM noted that its Hydrotec fuel cell system will be engineered at its Michigan technical facilities in Pontiac and Warren and manufactured at its Brownstown Charter Township battery assembly plant.

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