By Sam Boughedda
Investing.com — On Tuesday, Nikola Corp (NASDAQ:NKLA) and Proterra Inc (NASDAQ:PTRA) announced a new long-term supply agreement for Poterra's battery technology to power Nikola's zero-emission semi-trucks.
Nikola shares have fallen 2.58% and Proterra shares are down 3.77% Tuesday.
The multi-year supply agreement will see Proterra's product power the Nikola Tre battery-electric and Tre fuel cell electric vehicles.
According to Proterra, Class 8 trucks, despite their importance to the economy, are some of the worst polluters in the transport industry. Proterra's CEO, Gareth Joyce, said they are "excited to join Nikola on this journey to help drive heavy-duty trucking to zero emissions."
"With the growing demand for the Nikola Tre BEV and FCEV, we have actively pursued battery supply through a dual source strategy," said Mark Russel, Nikola's CEO.
"We look forward to collaborating with Proterra, which is expected to bring industry-leading heavy-duty EV battery solutions to Nikola's battery-electric and fuel cell electric vehicle platforms," he added.
The first Proterra Powered Nikola semi-trucks are anticipated to be produced in the fourth quarter, with prototypes delivered to Nikola in the second quarter.