Dive Brief:
- EV maker Nikola expects to fully transfer its battery operations from Cypress, California, to its Coolidge, Arizona facility this April — months ahead of schedule.
- Expediting this move further supports the company’s cost-saving effort which involves centralizing truck and fuel cell assembly as well as battery module and pack production, according to a news release.
- “Over the past several months, the Nikola team has been working to ensure the battery production transition plan was seamless and on schedule,” said President and CEO Michael Lohscheller in the update. Nikola brought battery pack production in-house with the acquisition of Romeo Power in October 2022.
Dive Insight:
Nikola is consolidating its operations in an effort to save costs and improve production after failing to deliver its goal of 300 semi trucks last year. The company also lowered its EV manufacturing targets for 2023.
Along with a new production setup, Nikola is eyeing savings of up to $105,000 per BEV at the Coolidge facility with plans to install an automated battery module and pack line in Q2, according to its Q4 report.
From startups to established companies, automakers across the board have faced production snags on their journey to electrification.
Rivian fell short of production targets by 663 EVs as the manufacturer grappled with lack of supply for a key part causing five days of downtime in two months. Similarly, General Motors was forced to delay its production target of 400,000 EVs by six months after scaling production at its first battery facility took longer than expected.
