US hydrogen truck pioneer Nikola goes bust

Nikola, a pioneering company in the hydrogen truck industry, has recently filed for bankruptcy protection and is now up for sale. Headquartered in Phoenix, Arizona, the company currently has $47 million in its bank account, which is designated for its HYLA subsidiary responsible for supplying hydrogen to customers. Nikola is in the process of establishing a 'hydrogen corridor' spanning from north to south California to facilitate refueling for its Class 8 trucks, with operations set to continue until the end of March.

The decision to seek Chapter 11 bankruptcy protection was prompted by Nikola's struggles to secure funding and negotiate a trade sale in a challenging automotive market focused on electric vehicles. Specializing in manufacturing Class 8 trucks powered by hydrogen fuel cells and batteries, the company had previously raised over $700 million before going public through a SPAC company in 2020.

Steve Girsky, the President and CEO of Nikola, expressed the company's predicament, stating, “Unfortunately, our very best efforts have not been enough to overcome these significant challenges, and the Board has determined that Chapter 11 represents the best possible path forward under the circumstances for the Company and its stakeholders.”

Despite the setback, Nikola managed to secure $230 million in funding from Bosch and Hanwha. Additionally, the company has been actively involved in innovative projects such as AC induction motors and contributing to the development of the Tesla Museum. Bosch, a key partner, has been conducting tests on fuel cells in light commercial trucks, showcasing Nikola's commitment to advancing clean energy solutions.

Girsky highlighted Nikola's achievements in advancing zero-emissions transportation, including introducing the first commercially available Class 8 hydrogen fuel cell electric trucks in North America and establishing the HYLA hydrogen refueling highway connecting Northern and Southern California. He emphasized the significant milestones reached by Nikola, with customers accumulating approximately 3.3 million fleet miles on both FCEV and BEV truck platforms, and the HYLA fueling network dispensing over 330 metric tons of hydrogen.