Hydrogen and battery-electric truck manufacturer Nikola plans to take FID on its Phoenix Hydrogen Hub in Q3 this year, pending a Department of Energy loan and regulatory approval.

However, the firm still anticipates continued losses going into 2023, setting full-year guidance for margins of between -75 and -95pc. Fuel-cell electric vehicle (FCEV) truck deliveries throughout the year are expected to range from a low case of 125 to a high case of 150. The firm expects to realise cost reductions from the acquisition of battery supplier Romeo Power—bringing battery-pack manufacturing in-house—as the year progresses.

Partnerships

Nikola recently signed a memorandum of understanding with Australia’s FFI to partner on hydrogen production projects, with an eye toward jointly progressing the Phoenix hub. The truck manufacturer anticipates the hub will produce 30t/d initially and scale up to 150t/d.

The truck manufacturer has also signed a strategic collaboration with New York-headquartered Plug Power, which will supply green hydrogen starting from this year. Volumes are expected to rise to 125t/d by 2026, with 80pc under a take-or-pay contract. Plug will also supply a 30t/d liquefaction system to the Phoenix hub.

150 – High-case FCEV deliveries in 2023

In exchange, Plug has committed to purchasing up to 75 of Nikola’s Tre FCEVs over the next three years to bring green hydrogen to its customers in North America, with the first trucks due to be delivered in 2023.

This week, Nikola announced that, in partnership with Germany’s Eon, it had signed a letter of intent with logistics firm Richter Group to supply an initial 20 FCEV trucks for delivery in 2024. And the previous month, the manufacturer in collaboration with transport firm Iveco signed a letter of intent with Germany’s GP Joule for an order for 30 FCEV trucks for delivery in 2024, with the option a further 70 the following year.

Penalties

Nikola’s former CEO, Trevor Milton, who stepped down in 2020, was found guilty on three charges of securities and wire fraud in October last year. The company settled with the Securities and Exchange Commission in December 2021 for a $125mn civil penalty, to be paid in instalments through 2023.

“Under the terms of the resolution, Nikola neither admits nor denies the SEC’s findings in this matter. The company has taken action to seek reimbursement from its founder, Trevor Milton, for costs and damages in connection with the government and regulatory investigations,” the company said in a public statement.

Nikola saw particular allegations of misrepresenting the capabilities of its prototype FCEV truck in 2017. While the company had claimed in a 2020 statement refuting allegations of misconduct that all the components of the truck were functional, “it ultimately decided not to invest additional resources into completing the process to make the Nikola One drive on its own propulsion”. Similarly, the company attempted to excuse a commercial displaying the prototype in motion by saying it was described as “in motion” but not “under its own propulsion” or “power-train driven”.

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Author: Polly Martin