EV Maker Nikola ‘Evaluating’ Making Its Own Battery Packs, Says CFO

Electric heavy-truck maker Nikola ‘evaluating’ making its own battery packs, says Chief Financial Officer (CFO).

Nikola currently source its batteries from LG, while the company signed a supply deal with Proterra Inc in January.

It began the production of the battery-powered version of its electric Tre semitruck in March, beating rival Tesla’s electric semitruck to market. 

Electric heavy-truck startup Nikola Corporation is “evaluating options” to make its own battery packs in 2024, Chief Financial Officer Kim Brady said on Thursday.

“If in-sourcing opportunity is available to us, and if we decide to explore that, that will likely be in 2024,” Brady said at the Deutsche Bank Global Auto Industry Conference, adding to “ultimately” increase volume and reduce costs Nikola may have to explore that option.

Currently, Nikola sources its batteries from LG Energy Solution, while the company signed a supply deal with Proterra Inc in January.

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Brady reiterated the company’s target to make 300 to 500 Tre battery-electric trucks this year but said supply chain snarls remain a concern.

He said Nikola aims to localize its parts sourcing as much as possible to North America, saying most of its parts were coming from Europe now.

Back in March, Nikola began the production of the battery-powered version of its electric Tre semitruck at its factory in Coolidge, Arizona, beating rival Tesla’s electric semitruck to market.

The battery-electric version of the Tre is intended for shorter routes, with an estimated range of about 350 miles. Nikola expects to deliver between 300 and 500 of the trucks this year before ramping up production to a higher level in 2023.

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