Agricultural and industrial equipment manufacturer CNH Industrial agreed yesterday to invest $250m in US-based hydrogen-fueled truck developer Nikola Corporation to lead a series D round expected to close at more than $1bn.
CNH is providing $100m in cash in addition to $150m in services that will equate to equity in Nikola. The round values the company at $3bn pre-money.
Nikola produces a range of electric and hydrogen fuel cell-powered heavy duty trucks and powersports vehicles. Two CNH subsidiaries – commercial vehicle producer Iveco and powertrain manufacturer FPT Industrial – will help the company with its industrialisation activities.
CNH Industrial CEO Hubertus Mühlhäuser said: “The increasing focus on the recognition that there needs to be fundamental reductions in automotive emissions is driving our industry to rapidly seek advanced technological solutions.
“Iveco is now ideally placed to offer customers an even wider range of transport solutions including natural gas, electric and fuel-cell powered vehicles.
“Nikola’s choice of Iveco as its strategic partner is testament to our internationally recognised excellence in heavy duty trucks and alternative powertrain technologies.”
The company had previously raised $210m in a November 2018 series C round that included hydrogen storage technology producer Nel Hydrogen at a $1.3bn post-money valuation. Automotive components provider Wabco had already invested $10m in Nikola in late 2017 at a $1bn valuation.
Image courtesy of Nikola Corporation.
