Nel ASA has invested $5m into fuel cell truck developer Nikola Motor Company as part of its C-round financing.

Last month, Nikola announced it had secured $100m worth of investment (pre-money valuation of $1.1bn) in the current C-round and that the process to raise more than $200m was progressing well. This $5m 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 revolutionise the heavy-duty trucking industry and look forward to strengthening our collaboration even further with this equity investment,” Nel’s CEO Jon André Løkke explained.

“Together, Nikola and Nel will pave the way for an emissions-free future.”

Trevor Milton, CEO of Nikola

“Nikola intends to build a US nationwide network of hydrogen (H2) stations for zero-emission truck and passenger vehicles, and they are front runners in a massive transportation technology shift. On 22nd August, Nel announced the construction of the world’s largest electrolyser manufacturing plant, which will fully support Nikola’s ambitions to outcompete fossil alternatives.”

Nikola Motor Company is pioneering H2-electric renewable technology within heavy-duty transportation. Nikola has an ambition to build a network of 700 H2 fuelling stations across North America by 2028 and has been awarded an 800-truck order commitment from American brewing company Anheuser-Busch. The total number of truck pre-orders is currently exceeding 11,000.

Nikola and Nel announced earlier this year a multi-billion NOK partnership where Nel will deliver 448 electrolysers and associated H2 production equipment for the fuelling 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 will pave the way for an emissions-free future,” said Trevor Milton, CEO of Nikola.