Nikola CEO Talks Gas Cells, BEVs, Hydrogen Manufacturing – Gas Smarts

Regardless of what might be charitably described as a rocky begin, Nikola appears to be getting its sea-legs. Following the ousting of then-CEO, Trevor Milton, the corporate reorganized underneath its second CEO, Mark Russell, and final 12 months managed to construct and ship greater than 100 battery-electric Class 8 tractors.

Michael Lohscheller is the corporate’s third CEO; he joined the corporate final spring earlier than the European launch of the gasoline cell truck at IAA in Hanover, Germany. He took the reins as CEO in November 2022, following Russell’s departure. 

HDT recoded a wide-ranging video interview with Lohscheller in early January the place he mentioned plans for the American launch of a gasoline cell powered truck, the corporate’s plans to supply and distribute hydrogen, and the infrastructure issues that proceed to thwart the wide-scale adoption of battery-electric vans.   

This interview, condensed from a full video, has been frivolously edited for size and readability.

HDT: Is that this your first tour of obligation within the heavy truck house?

Michael Lohscheller: I got here [to Nikola] in March of final 12 months after greater than 20 years within the passenger automobile enterprise. It is a new world for me. So, it is my first task within the trucking trade, and clearly it is tremendous thrilling for me. At Nikola, we wish to be a frontrunner in zero-emission mobility, so a really thrilling journey we’re on.

HDT: Nikola launched a fuel-cell-electric truck in Hannover final fall at IAA. Then in December, simply a few weeks in the past, you bought an announcement from the California Air Sources Board that you just’d been issued a certificates of compliance for the fuel-cell-electric truck. I assume that mainly paves the best way for the corporate to begin manufacturing. When is that anticipated to occur over on this facet of the pond?

Lohscheller: Within the second half of 2023 we are going to launch the gasoline cell truck right here, which clearly is a vital truck for us. Listed here are just some info and figures in regards to the truck: it comes with a variety of as much as 500 miles and the refuel time is 20 minutes or much less. The facility is 536 horsepower. It’s a extremely vital truck, and it’s important that we launch it within the second half of this 12 months as a result of all people is ready for gasoline cell vans. I believe when it comes to time to market we wish to be the primary within the Class 8 phase. We’re very enthusiastic about this 12 months and our gasoline cell truck.

HDT: While you carry the gasoline cell electrical truck on board subsequent 12 months, might that divert engineering and manufacturing assets away from the battery-electric vans? Will you be capable of preserve their manufacturing ranges?

Lohscheller: Nicely, I believe we have now an excellent sequence right here at Nikola. Final 12 months, 2022, it was all in regards to the battery-electric truck. And that was our first truck. I imply, on the time we had simply constructed the Coolidge facility. And now we’re in a position to shift engineering assets to the gasoline cell truck. We now have realized loads of issues from our first launch. We enhance day-after-day, so now the vast majority of our assets are completely centered on the gasoline cell truck.

HDT: So far as the BEV is anxious, final 12 months you issued steerage saying you’d construct between 300 and 500, I believe you got here up a bit in need of that quantity. However what number of vans did you construct final 12 months?

Lohscheller: We are going to announce detailed figures in our earnings launch on February 23 I believe it’s. So, on the finish of Q3 we had delivered the primary 111 vans to our sellers, and our sellers at the moment are delivering these vans to finish clients. However what I can say is that we made good enhancements to the every day manufacturing output in This fall, so that is good. And the good information is that we wish to change many issues and actually provide zero-emission mobility to our clients. And we have now vans accessible to clients, which I believe may be very thrilling in a world the place in the intervening time there are shortages in all places. We now have vans accessible for take a look at driving and in addition on the market. And we’re actually proud that we have now the battery-electric truck available in the market, and accessible to clients.

HDT: Abroad you utilize IVECO as a vendor community service, components, guarantee, what have you ever. IVECO does not have a presence right here in North America, so who’s your North American vendor community?

Lohscheller: We now have a really robust vendor community right here within the US. We now have set it up with varied totally different dealerships with loads of expertise. Total we have now 127 vendor websites, and I believe that is actually vital when it comes to service. As a result of we have been speaking originally how totally different the truck trade is in comparison with the passenger automobile enterprise. In fact, I imply in case one thing occurs with a truck the fast service is so vital. And due to this fact, I believe it is vital that we have now arrange this robust community with loads of respected dealerships, with loads of expertise and good service capabilities. So, in case one thing ought to occur to our truck, we will repair this instantly as a result of as you already know it is all in regards to the uptime.

HDT: Was a part of the problem you had within the provide chain final 12 months battery-related? Have been you having hassle getting batteries?

Lohscheller: We had originally a number of points on chips for example, however we managed very efficiently by way of that with our provide chain crew. On the battery facet, we made an vital choice to amass Romeo Energy, as a result of the battery is a crucial ingredient within the battery-electric truck. And I really feel significantly better now whereas we have now it in our fingers and may handle it ourselves. As a result of there are various enhancements you may make, to begin with on the standard, and within the effectivity, but in addition on the general integration. I wish to enhance the battery additional on. So actually vital strategic transfer from our facet, and I am very pleased that now we have now the battery as a part of Nikola in our personal firm.

HDT: On the time, Nikola was Romeo Energy’s greatest buyer, I perceive, however additionally they provide Paccar. Is that provide settlement going to return to an finish now that you just personal Romeo and Paccar one among your opponents?

Lohscheller: Nicely, we’ll work by way of all of the totally different relationships. Clearly, we’re the most important buyer as you say, that is why it makes a lot sense. And now we work by way of all the opposite relationships Romeo had up to now.

HDT: Getting these vans to market, you’ve got bought some stock clients are welcomed to your door to check drive them. However one of many greatest boundaries that fleets face proper now to the uptake of electrical vans is the charging infrastructure. There is a two-year or extra backlog I believe normally if you would like the utility firms to return in and begin doing a little work in your property, and there’s plenty of engineering concerned there. There aren’t any industrial charging networks in place but, anyplace actually within the nation. Has Nikola bought plans to assist clients out with that, attempt to get them up and operating sooner?

Lohscheller: Sure, completely. However to begin with, you are proper; infrastructure is a extremely vital subject, and we all the time preserve saying we have to carry the hen and the egg collectively right here — the truck and EV infrastructure. Some clients have actually good options, in some circumstances our sellers even have loads of expertise and might help. However we even have instruments like cellular chargers. That’s fairly vital and might help to bridge a sure time period. So, we at Nikola provide cellular chargers to our clients, as a way to use this till for example the everlasting infrastructure is in place. And clients are actually on this, and a few truly wish to preserve this for an extended time period. Total, I believe the infrastructure subject is of highest significance.

HDT: What kind of market share are you hoping to attain, say inside the subsequent 5 years or so?

Lohscheller: I wish to make it possible for Nikola is a frontrunner in zero-emission mobility, and clearly we aren’t the one ones. Everyone is coming. We have to see how shortly the adoption price will increase. I sense, for instance, it would occur sooner in Europe than in some U.S. states right here. However general, we completely wish to take a number one place there. I do not wish to quantify a market share goal as a result of it’s nonetheless too early to say, however Nikola may have a number one place in zero-emission mobility in Class 8.

HDT: Let’s change gears then, metaphorically, and discuss a bit bit in regards to the hydrogen facet of what you are promoting. The corporate not too long ago bought a big tract of land close to Buckeye, Arizona, the place I perceive you propose to construct an electrolyzer plant. You’ve got additionally inked a cope with one other hydrogen producer known as Plug Energy. You are lining up all of your geese to have , satisfactory provide of hydrogen round. When are we going to see sufficient vans constructed to begin consuming all that hydrogen?

Lohscheller: Nicely, we have now an important technique. Our vans on the gasoline cell facet will come out within the second half of 2023, in order that’s in a few months. In fact, we’ll ramp that up, so we may have a few hundred at first after which hopefully into the hundreds. On the identical time, it is vital that we provide the hydrogen and we wish to safe a hydrogen supply with our companions. We additionally wish to produce with companions right here in Buckeye, which is near our headquarters in Phoenix, that may present hydrogen to the California market first. We wish to make it possible for wherever there’s a robust demand for the gasoline cell truck that hydrogen is obtainable. The general complete price of possession relies upon so much on that, and that is why we all the time say at Nikola we stand on two legs: we have now the truck enterprise and the vitality enterprise. I believe that is completely vital as a result of that is what clients request from us.

HDT: These two producers I discussed a couple of minutes in the past, will they be producing what you’d name inexperienced hydrogen, or someplace between inexperienced and grey?

Lohscheller: I believe we must be pragmatic. To start with, to our earlier dialogue, diesel vans must disappear, proper? I clearly wish to have inexperienced hydrogen, however whether it is grey originally, I believe we have now to be pragmatic and say, “Okay, that is step one.” However clearly on the finish of the day all of us wish to go together with inexperienced hydrogen for positive. I do not wish to announce issues and all the time discuss issues, I wish to do issues. I really feel good that we launched the gasoline cell truck this 12 months, and that we’re additionally in a position to provide hydrogen. And yeah, whether it is inexperienced, nice. Whether it is grey originally, I believe that is additionally superb.

HDT: How shut do you assume we’re to scalable volumes of inexperienced hydrogen? It looks as if so much to attain.

Lohscheller: I believe loads of issues occurred in 2022 which assist hydrogen; the Inflation Discount Act right here in america is clearly very useful, proper? There may be loads of assist for the manufacturing of hydrogen, and in addition for the allotting. I believe as soon as folks like Nikola come out with vans and may ramp up the quantity, I believe we will see significant volumes within the subsequent couple of years. As properly, all people investing in hydrogen is on the lookout for an offtake, and naturally our truck is ideal for this. I believe we will see a breakthrough of hydrogen within the truck enterprise very, very quickly.

HDT: Are there any plans for a hydrogen inner combustion engine inside the Nikola framework?

Lohscheller: We mentioned this, clearly. It is an fascinating subject. However allow us to finalize it first, after which we make some bulletins. In the mean time, we’re laser-focused on the battery-electric truck which we launched efficiently final 12 months. This 12 months [we’ll focus] on the gasoline cell truck. I am positive we may have many extra concepts, and I might say, extra to return.