Shares of Nikola Corp (NASDAQ:NKLA) gained as much as 60% Thursday after the electric trucking company announced that they have entered into a strategic supply partnership with hydrogen producer BayoTech.
According to the announced deal, BayoTech has agreed to buy up to 50 of Nikola’s Class 8 hydrogen fuel cell trucks within the next five years. The initial batch of twelve trucks is scheduled for delivery between 2023 and 2024. As part of the deal, Nikola's hydrogen distribution division will reciprocate by purchasing up to 10 of BayoTech's HyFill hydrogen transport trailers. These trailers play a crucial role in transporting high-pressure hydrogen from production sites to refueling stations.
"Nikola and BayoTech are united by a common goal of providing reliable access to hydrogen throughout the United States," said Michael Lohscheller, President and CEO of Nikola Corporation.
"BayoTech's low-carbon hydrogen fuel and transport equipment will play an important part in supporting the adoption of Nikola's Class 8 fuel cell electric zero-emission trucks."
Additionally, Bosch announced during its 2023 Tech Day event that the engineering company would begin volume production of its fuel-cell power modules, with Nikola serving as Bosch’s pilot customer.
Bosch fuel cells will be used in Nikola’s Class 8 truck, which has first deliveries to customers starting in North America in Q3 of this year.
“Bosch is one of the very few companies that are capable of mass-producing technology as complex as fuel-cell stacks. We don’t just have the required systems expertise, but also the capability of quickly scaling up new developments to mass production,” said Bosch Mobility chairman, Markus Heyn.
Shares of NKLA are up 61.54% near end of day trading on Thursday.