SEOUL– LG Energy Solution Ltd., a leading South Korean battery maker, has signed a battery supply contract with Nikola Corp., a U.S. electric vehicle startup, according to industry sources Friday.
The Arizona-based company said in its third-quarter earnings report it entered into a long term battery supply agreement with LG Energy Solution on Oct. 20, under which LG will be providing battery cells for Nikola’s trucks from 2022 through 2029.
It did not give any other details, including the amount of the supply or the value of the deal.
An official at LG Energy declined to comment, citing its policy on clients.
Nikola has been under fire after its founder and former chairman, Trevor Milton, was charged with fraud for allegedly misleading investors about its technology and products to inflate the company’s stock price.
Its shares jumped after the company revealed in the earnings report it is in talks with the U.S. Securities and Exchange Commission on a US$125 million settlement, subject to approval from SEC commissioners.
Nikola said it will seek reimbursement from Milton for the costs and damages in relation to the investigation.
In the earnings report, the company said it plans to have its Tre Bev electric heavy duty truck ready for public road release by December this year.
Source: Yonhap News Agency