Nikola Corp. stated Thursday it signed a cope with Bosch Group to construct Bosch gas cell energy modules on the electrical car startup’s Coolidge, Ariz., facility.

Nikola expects to launch the gas cell energy modules in 2023. The corporate’s shares rose 5 % to $11.30 in morning buying and selling.

As per the deal, Bosch will provide absolutely assembled gas cell energy modules and different main elements to Nikola, together with the gas cell stack. Nikola will then assemble them at its manufacturing operation in Coolidge.

“This announcement is the results of a multi-year working relationship with Bosch,” Nikola CEO Mark Russell stated in a press release. “We will likely be collaborating with Bosch to develop and assemble gas cell energy modules particularly for our purposes on the identical Coolidge, Arizona facility the place we manufacture our Nikola automobiles, using main elements from the Bosch international manufacturing community.”

A gas cell energy module is a system that generates electrical energy from hydrogen in automobiles and is commonly utilized in industrial automobiles.

Automotive Information contributed to this report.