Nikola Corp. said Thursday it signed a deal with Bosch Group to build Bosch fuel cell power modules at the electric vehicle startup’s Coolidge, Ariz., facility.
Nikola expects to launch the fuel cell power modules in 2023. The company’s shares rose 5 percent to $11.30 in morning trading.
As per the deal, Bosch will supply fully assembled fuel cell power modules and other major components to Nikola, including the fuel cell stack. Nikola will then assemble them at its manufacturing operation in Coolidge.
“This announcement is the result of a multi-year working relationship with Bosch,” Nikola CEO Mark Russell said in a statement. “We will be collaborating with Bosch to develop and assemble fuel cell power modules specifically for our applications at the same Coolidge, Arizona facility where we manufacture our Nikola vehicles, utilizing major components from the Bosch global manufacturing network.”
A fuel cell power module is a system that generates electricity from hydrogen in vehicles and is often used in commercial vehicles.
Automotive News contributed to this report.