© Reuters. Bosch teams with Nikola (NKLA) in $2.8B hydrogen deal
German engineering company, Bosch, revealed Thursday that the company is investing almost €2.5 billion ($2.8B) in hydrogen fuel cell technology from 2021 to 2026 and has chosen to partner with US electric truck firm Nikola (NASDAQ:) who will act as the pilot customer of the modules.
According to Bosch, by 2030, approximately 20% of newly manufactured trucks weighing six metric tons or more are expected to be equipped with fuel-cell powertrains.
Bosch’s CEO, Stefan Hartung, expressed that the company is embracing the potential of hydrogen and experiencing growth in this area. The technology giant is aiming to generate €5B (£4.2bn) in sales of hydrogen technology by 2030.
“Here in Stuttgart-Feuerbach, in the plant whose history goes back further than any other Bosch plant, the hydrogen future is about to happen,” Hartung declared at its Tech Day conference. “Bosch knows its way around hydrogen, and Bosch is growing with hydrogen.”
Hydrogen fuel cell vehicles offer the advantage of quick refueling and extended range compared to battery-electric vehicles, although they face challenges related to infrastructure and lower energy efficiency.
“Only with hydrogen can there be a climate-neutral world…. the company therefore strongly advocates the establishment of a hydrogen economy, and is stepping up its investments in hydrogen,” the company said.
Production of Bosch’s fuel-cell power module will begin at its Feuerbach plant on the outskirts of Stuttgart and in Chongqing in China.
Bosch’s chief today called on German and European policymakers to “step up the pace of hydrogen production in the European Union (EU),” and use the tech in “all sectors of the economy.”
Shares of NKLA are up 2.17% in pre-market trading on Thursday.