General Motors said it had signed a non-binding memorandum of understanding with Nikola Corporation for a global supply agreement to provide its Hydrotec fuel cell system for Class 7/8 semi-trucks. The MoU replaced the previous transaction announced last September.

However, the latest agreement omits mention of the previous plan for GM to build and market Nikola’s electric ‘Badger’ pickup.

Under the potential agreement referenced in the MoU, GM would engineer its fuel cell system to the specifications mutually agreed upon by both companies. GM and Nikola would discuss the appropriate scope of services that GM would provide for the integration of the fuel cell system into Nikola’s vehicles.

It was expected the potential arrangement would be cost plus, and Nikola would pay upfront for the capital investment for the capacity.

GM and Nikola would also discuss the potential of a supply agreement for GM’s Ultium battery system for Nikola’s Class 7/8 trucks.

The fuel cell system would be engineered at GM Michigan technical facilities in Pontiac and Warren and manufactured at the Brownstown Charter Township battery assembly plant. 

“This supply agreement recognises our leading fuel cell technology expertise and development,” said Doug Parks, GM head of global product development, purchasing and supply chain.

“Providing our Hydrotec fuel cell systems to the heavy duty class of commercial vehicles is an important part of our growth strategy and reinforces our commitment toward an all electric, zero emissions future.”