PHOENIX, Ariz. – Nikola has entered into a non-binding Memorandum of Understanding with General Motors, replacing the previous transaction announced Sept. 8.

Under the agreement, GM’s Hydrotec fuel cell system will be integrated into Nokola’s Classes 7 and 8 commercial trucks. Nikola will begin testing of the prototypes by the end of 2021, with beta prototypes expected to hit the road in the first half of 2022.

GM and Nikola will also discuss potential for the use of GM’s Ultium battery system.

“We are excited to take this important step with GM, which provides an opportunity to leverage the resources, strengths and talent of both companies,” said Mark Russell, CEO of Nikola.

“Heavy trucks remain our core business and we are 100% focused on hitting our development milestones to bring clean hydrogen and battery-electric commercial trucks to market. We believe fuel-cells will become increasingly important to the semi-truck market, as they are more efficient than gas or diesel and are lightweight compared to batteries for long hauls. By working with GM, we are reinforcing our companies’ shared commitment to a zero-emission future.”

The new MoU does not include GM taking an equity stake in Nikola, or in taking over development of the Nikola Badger. Nikola will refund all order deposits for the Badger, which was dependent on an OEM partnership.