Electric truck maker Nikola has announced that it has signed a deal with Proterra for the long term supply of batteries for its prime movers.

Nikola says its trucks will be fitted with Proterra batteries  and that the first of these are expected in the fourth quarter this year with prototypes systems to be delivered to the truck maker in the second quarter according to Nikola.

Nikola revealed in October last year (2021) that it had entered into a long-term supply agreement with LG Energy Solution for supply of batteries from 2022 through to 2029.

“With growing demand for the Nikola Tre BEV and FuelCellEV, we have actively pursued battery supply through a dual source strategy,” Nikola’s CEO Mark Russell said. 

Proterra, revealed in December that it would open a new battery manufacturing factory in South Carolina as demand grows.

Nikola in the recent past has entered into Letters of Intent with logistics and trucking companies to sell hundreds of its Tre battery electric trucks and fuel cell trucks.

One of Proterra’s major backers  has been Daimler Trucks  which  invested around $US155 million in the company in 2018 ad is collaborating with it  for supply of battery technology  and hardware for use in  various Daimler subsidiaries including Thomas Built Buses.

As an indicator of how the automotive industry is heading, Iveco made a $US 250 million investment in Nikola and working with  the zero emission  start up to build battery electric and fuel cell electric trucks at one of its plants in Austria.

Ford also revealed this week that it had already gained a paper profit of $US8.2billion (yes you read that correctly, billion) on its investment in light commercial electric start up, Rivian. Ford has a 12 per cent stake in Rivian, following its investment of $US500million in the start-up back in 2018.

The $US8.2 billion gain last quarter  follows Rivian’s stellar IPO in November. Time will tell if paper. Profits on stock gains can be turned into cash profits from actual EV pick up sales.