EV maker Nikola ‘evaluating’ making its own battery packs, says CFO

Electric-truck maker Nikola Corp (NKLA.O) is “evaluating options” to make its own battery packs in 2024, Chief Financial Officer Kim Brady said on Thursday.

“If in-sourcing opportunity is available to us, and if we decide to explore that, that will likely be in 2024,” Brady said at the Deutsche Bank Global Auto Industry conference, adding to “ultimately” increase volume and reduce costs Nikola may have to explore that option.

Currently, Nikola sources its batteries from LG Energy Solution (373220.KS), while the company signed a supply deal with Proterra Inc (PTRA.O) in January.

Brady reiterated the company’s target to make 300 to 500 Tre battery electric trucks this year, but said supply chain snarls remain a concern.

He said Nikola aims to localize its parts sourcing as much as possible to North America, saying most of its parts were coming from Europe now.