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Nel invests US$5 million in Nikola C round financing

Norway-headed hydrogen value chain solution provider Nel ASA (Nel) has announced that it has invested US$5 million into Nikola Motor Company (Nikola) as part of their C-round financing.

An artist’s rendering of the Nikola Two hydrogen-electric powered semi-truck that US brewery major Anheuser-Busch intends to convert its entire long-haul dedicated fleet to by 2025 (image courtesy Nikola Motor Company).

On August 6, 2018, Nikola announced that they had secured US$ 100 million investment (pre-money valuation of US$ 1.1 billion in the current C-round and that the process to raise more than US$ 200 million was progressing well. According to Nel, this US$ 5 million investment is in line with earlier communications from Nel and further strengthens the partnership and collaboration between Nel and Nikola.

We fully support Nikola in their exciting journey to revolutionize the heavy-duty trucking industry and look forward to strengthening our collaboration even further with this equity investment. Nikola intends to build a US nationwide network of hydrogen stations for zero-emission truck and passenger vehicles, and they are front-runners in a massive transportation technology shift. On August 22, Nel announced the construction of the world’s largest electrolyzer manufacturing plant, which will fully support Nikola’s ambitions to outcompete fossil alternatives, said Jon André Løkke, CEO of Nel.

Nikola Motor Company is pioneering hydrogen-electric renewable technology within heavy-duty transportation. Nikola has the ambition to build a network of 700 hydrogen fueling stations across North America by 2028 and has been awarded an 800-truck order commitment from Anheuser-Busch, the total number of truck preorders is currently exceeding 11 000.

In November 2017, Nikola and Nel announced an exclusive partnership and earlier this year a multi-billion NOK partnership where Nel will deliver 448 electrolyzers and associated hydrogen production equipment for the fueling network.

To say we have come a long way in 2018 is an understatement. Nikola’s business model has been vetted, and the investment world is taking notice. The C-round financing is progressing well and we are proud to have Nel as part of the new equity owners as they already hold an integrated role in our story. Together, Nikola and Nel pave the way for an emissions-free future, said Trevor Milton, CEO of Nikola.

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