Nikola To Move Battery Production From California To Arizona - What Does It Mean?

Shivani Kumaresan
1 min read
0
In this article:

  • Nikola Corp (NASDAQ: NKLA) said it is moving its battery manufacturing from Cypress, California, to its Arizona manufacturing facility.

  • The move will bring Nikola's truck assembly, fuel cell power module assembly, and battery module and pack production under one roof.

  • It also will include battery line automation to improve quality and increase efficiencies.

  • The company intends to maintain manufacturing operations in Cypress through the end of Q2 2023 while it works through a transition plan.

  • Also Read: Allison Transmission Partners With Nikola For EV Testing

  • A battery engineering presence is expected to remain in California at a separate facility to focus on the development of Nikola's next-generation battery management system software and modules.

  • "This decision reinforces our commitment to finding ways to optimize our cost structure and create a sustainable business model," said CEO Michael Lohscheller.

  • The move is expected to be complete by the early third quarter.

  • Price Action: NKLA shares are trading higher by 0.86% at $2.53 on the last check Friday.

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