Nel Realigns Relationship With Nikola

(RTTNews) - Nel ASA and Nikola (NKLA) have announced a revision to their previous agreement, with Nel becoming the supplier for Fortescue's 80 MW electrolyzer, involving a total consideration of about $20 million.

The original supply agreement between Nel and Nikola, initiated in 2018 and followed by a firm purchase order for 85 MW of electrolyzer equipment in 2020, has been terminated.

The companies have mutually agreed to cancel the existing supply agreement, opting for a new arrangement focused on 110 alkaline stacks and associated Balance of Stack equipment. As a compensation for the modified scope, Nel will receive around $9 million.

Concurrently, as part of Fortescue's acquisition of Nikola's Phoenix Hydrogen Hub, 80 MW of electrolyzer equipment previously supplied by Nel to Nikola will be incorporated. In return for updated guarantees and warranties for the equipment and changes in the scope of delivery, Nel will receive about $11 million from Fortescue.