Nikola has revealed that it’s going to begin to liquidate the belongings of battery producer Romeo Energy regardless of paying $144 million for the corporate final August.
It was simply 11 months in the past that the alternative-fuel truck producer determined to buy Romeo Energy for $144 million in inventory to permit it to start out making battery packs of its personal. On the time of the deal, Romeo Energy was considered one of Nikola’s battery suppliers, alongside LG Vitality Resolution and Proterra. Nikola had hoped that it will be capable to begin making its personal battery packs as early as 2024.
Quick ahead to July 2023 and Nikola has made the shock resolution to liquidate the belongings of Romeo Energy.
“Nikola is discontinuing its operations with Romeo Energy and has commenced a continuing underneath the California Task for the Advantage of Collectors (ABC) statutory scheme,” a spokesperson from the truck producer revealed.
It’s not but clear why Nikola has made this resolution but it surely may have one thing to do with the exorbitant prices of creating and producing battery packs in-house and it could have determined it’s higher to supply them from elsewhere.
Learn: Nikola Reducing 270 Jobs, Turns Focus On North America
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Information of this transfer comes simply three weeks after Nikola stated it will minimize 270 jobs at its services in Europe and the U.S. in a bid to cut back personnel-related money spend by greater than $50 million yearly, leaving it with 900 workers.
As well as, Nikola stated it would focus extra closely on the North American market within the quick future and is planning to promote its three way partnership share to Iveco Group. Additionally it is working to cut back the fabric price of its vans by higher localizing its provide chain.
