BUSINESS - COMPANY NEWS
The acquisition of Romeo Power by Nikola to be completed before 2023 - Photograph by Courtesy of Nikola Corporation
BUSINESS - COMPANY NEWS
by Taner Korkmaz
Founded in 2015, Nikola Corporation, as a company specialized in zero-emissions transportation, which is seen as the future of global land transportation, plans to both reduce costs and increase process efficiency by making possible processes in-house. The decision to acquire Romeo Power also supports this vision.
Founded in 2016, Romeo Power is headquartered in Cypress, California. Developing advanced electrification solutions for commercial vehicles, Romeo Power's largest customer is Nikola. By acquiring Romeo Power, Nikola aims to achieve operational improvements and at the same time cost reduction in battery pack production. With this acquisition, Nikola plans to save between 30 and 40% on non-cell related battery pack costs by the end of 2023.
After the acquisitions, which are expected to be completed by the end of October 2022, Nikola predicts annual savings of $350 million by 2026. There is an ongoing successful engineering and product development collaboration between the two companies, as Nikola is currently Romeo Power's largest customer. This will contribute greatly to the achievement of the goals in the plans made.
It wouldn't be wrong to say that being aggressive is essential in an ever-evolving industry. With this decision, Nikola Corporation has taken an important step to speed up its processes and reduce its costs.
