Electric truck maker Nikola said on Monday it has agreed to buy battery supplier Romeo Power Inc. for about $144 million in stock, a move that will help boost production of its battery packs.
Romeo Power, along with LG New Energy and Proterra, are battery suppliers for Nikola's prototype electric truck.
The company said in June that it was evaluating self-produced battery packs in 2024 to boost output and reduce costs. The cost of battery materials has risen over the past few months, exacerbated by the escalation in Russia and Ukraine that has forced EV makers to raise prices.
Nikola said it will provide Romeo Power with $35 million in transition funding to facilitate its continued operations.
