Nikola Buys Battery Supplier Romeo Power to Secure Supply

Electric truck firm Nikola has made effective the acquisition of Romeo Power, the supplier of batteries for electric vehicles, after signing the ownership of 100% of its shares for an individual price of $ 0.74 per share. In total, this transaction has been carried out for a total economic amount of 144 million dollars by the North American company in order to guarantee the control and supply of these components for the coming years.

The collaboration agreement between the two companies has been underway for several years. Romeo Power has numerous patents for new technologies, something that is of high interest to Nikola mainly due to the need that this company has to obtain vehicles with high energy storage capacities, as well as important figures in terms of their autonomy.

The purpose of this decision by Nikola has come after studying the possibilities that would derive from this movement. The main reason is the vertical integration of the entire production process, which will mean a significant improvement in operational control, as well as a significant reduction in the cost per battery and the materials of which they are composed.

On the aforementioned cost savings, from Nikola they expect to reduce the price of battery packs between 30 and 40% by the end of next year 2023. This, in turn, will result in savings of up to $350 million by 2026, when production of electric trucks is expected to be fully established.

With this acquisition of 100% of the company specialized in the development and manufacture of batteries, Nikola expects a significant acceleration in the development of specific products for the company, with a substantial increase in the specifications of these components, with a greater electric autonomy, as well as improvements in the recharge rate, something that results in a better experience for the end customer.

This transaction is expected to be completed by the end of next October. Once this has been completely done, Romeo Power will be merged with the Nikola company itself. In addition, the battery specialist’s current headquarters in Cypress, California, will become Nikola’s Battery Center of Excellence. However, until this deal is completed (within two months) Nikola will provide Romeo Power with a total of $35 million of additional liquidity in the event that completion of the transaction is delayed for reasons beyond the control of both corporations.

Electric Trucks: The Future Of Electric Mobility

Yes, electric trucks are the future of electric mobility and from here we are going to show you the brands that have begun to bet on change and the benefits of joining sustainable mobility through this type of vehicle.

The high level of CO2 emissions by the logistics industry, basically transport vehicles and trucks, is one of the main problems that must be alleviated. Precisely to reverse the damage caused, novel research has been carried out in order to replace conventional motors with electric ones.

Main benefits of electric trucks

Let’s summarize below the main benefits offered by these vehicles:

  • As they are entirely electric motors, they stop producing greenhouse gases, thus reducing polluting elements significantly. Undoubtedly, electric trucks generate a much lower ecological impact than fossil fuel vehicles.
  • Noise pollution in cities is a problem and these vehicles reduce the noise level.
  • Transport companies and the like must bear a high cost in fuel, something that they would reduce by having this type of vehicle. According to estimates made in this regard, the loading of an electric truck will cost 20% less than the truck that has to fill the tank with diesel. In any case, this percentage is increasing because of the constant increase in the price of fuel.
  • They offer a great autonomy and, depending on the model chosen, it is possible to obtain from 200 km to 2000 km. However, it is an aspect that companies continue to address. In fact, there are prototypes that have exceeded 6000 km.

The aim is to carry out efficient and sustainable transport routes, with shorter refuelling times.

The brands that are committed to producing electric trucks

Would you like to know which brands in the market are making great progress in the production of electric trucks? Get to know them!

  • Tesla. The Tesla Semi was officially presented to the world in 2018. We are talking about a fully electric truck, which offers a range of 800 km, whose battery can be charged in a matter of half an hour. It has a modern design and can go from 0 to 100 km / h in 5 seconds.
  • Nikola Motor and Bosch. Both companies have agreed to start together a project based on the production of trucks through hydrogen cells. These models can have a range of 2000 km and reach 1000 horsepower, much more than in the case of a conventional truck.
  • BYD. This brand is working on trucks that carry three hydrogen units, whose models will support different load capacities, from 8 to 16 tons. In addition to electric trucks, they also want to enter the electric bus market.
  • Toyota. The company is striving to create efficient trucks with multiple fuel cell groups. It is not a new system, as the brand has already introduced it in electric cars. To test its effectiveness, one of its prototypes made a route of more than 6000 kilometers with 60 tons of cargo.
  • Cummins. This company also wants to contribute its grain of sand with the AEOS electric truck, an electric propulsion model that has a maximum load of 20 tons and a range of up to 160 kilometers.
  • Daimler. The German company has produced the Fuso eCartera, an electric truck created by Mitsubishi that can load up to 3 tons and has a range of 100 km. It is also developing a more powerful model with greater load capacity. It is the E-Fuso Vision One, a vehicle that reaches 350 km of autonomy.

What can we expect in 2022?

The electric truck means a before and after in the sector and promises, in 2022, to continue presenting powerful and efficient models that do not go unnoticed. The main automotive companies have already opted for them and little by little they will populate the professional fleet, making them a reality.

Companies will be able to count on several systems to effectively control and manage the load of their fleet of electric trucks to get the most out of their daily routes. There’s not much left for that. At the moment, some of the most important companies worldwide such as Tesla are working to make it possible. In fact, we will soon be able to contemplate the transition from fossil fuel engines to those powered by electricity.

What can we expect from these trucks in 2022? These vehicles will be part of the transport of goods nationally and internationally and their main advantage is the reduction of pollution and the impact on the environment, something key that must be promoted in the world of logistics.

Its level of autonomy is more than satisfactory, although, as we have mentioned, everything depends on the model chosen. Be that as it may, some of them are very efficient, allowing you to optimize your refueling times.

In short, electric motor trucks will be part of the future of the transport sector, as more and more improvements are being made to make them more competitive and beneficial at the business level. As with electric cars, they represent a breakthrough in terms of savings and ecology.