buy ev truck manufacturer nikola battery supplier romeo power

Nikola Corp. has agreed to buy battery supplier Romeo Power Inc for about $144 million in stock, the electric truck maker said Monday, helping it ramp up its efforts to make battery packs.

The offer values ​​Romeo Power at 74 cents per share basis, or a 35 percent premium to the stock’s Friday close. The company’s shares were up 22 per cent in trading before the bell.

Romeo Power is one of the company’s battery suppliers for its prototype electric trucks, along with LG Energy Solutions and Protera Inc.

Nikola will be able to accelerate the growth of its EV platform with the acquisition of Romeo Power, Chief Executive Officer Mark Russell said in a statement.

The company said in June that it was evaluating the option of making its own battery packs in 2024 to increase volumes and reduce costs.

Battery material costs have increased over the past few months, with the Russian invasion of Ukraine forcing electric vehicle makers to raise prices.

The truck maker said it would provide $35 million in interim funding to Romeo Power to facilitate continued operations.

See also  Fuel efficient Suzukis are proving to be a hit with South African motorists