NKLA Nikola Corporation

By Micah Maidenberg

General Motors Co. said it signed an agreement to provide Nikola Corp. with fuel-cell systems the latter company would use in some of its heavy duty vehicles.

Under what it called a non-binding memorandum of understanding with Nikola, GM would supply its Hydrotec fuel cell system for use in two classes of Nikola semi-trucks.

The new deal replaces one from September, GM said. Under that previous arrangement, the automaker would take an 11% stake in Nikola and gain the right to nominate a director, while engineering and manufacturing a Nikola pickup truck.

The Hydrotec system will be engineered and manufactured at GM facilities in Michigan.

"GM and Nikola will also discuss the potential of a supply agreement for GM's versatile Ultium battery system for Nikola's Class 7/8 trucks," GM said in a statement Monday.

In September, a short seller alleged that Nikola was a fraud. Nikola has called the short seller's report false and misleading. The company has faced probes by federal authorities into those claims.

Nikola aims to sell zero-emission electric trucks.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

November 30, 2020 08:45 ET (13:45 GMT)

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