Nikola, Bosch tie up to build fuel cell power modules

Nikola Corp. said Thursday it signed a deal with Germany's Bosch Group to build Bosch fuel cell power modules for two of the vehicle startup's hydrogen-powered trucks.

Bosch, which has a stake in Nikola, will supply fully assembled fuel cell power modules and other major components to the Phoenix-based company.

A fuel cell power module is a system that generates electricity from hydrogen in vehicles and is commonly used in commercial vehicles.

The truck maker will then assemble the modules at its manufacturing operation in Coolidge, Ariz., for its regional and long-haul commercial semis.

Nikola expects to launch the fuel cell power modules in 2023. The company's shares rose 2.3 percent to $11.01 in morning trading.

“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.”

The announcement comes over a month after Nikola founder Trevor Milton was criminally charged with defrauding investors by lying to them about the company's products and technology.

Nikola in August halved its annual deliveries estimate and slashed its revenue forecast as supply chain issues drove delays in receiving certain parts.

Automotive News contributed to this report.