Transportation

Nikola Rolls Into Electric Trash Truck Business With Big Order From Republic Services


Nikola may not have much revenue yet, but the order book for the maker of battery- and hydrogen-powered commercial vehicles keeps getting heavier. Waste removal company Republic
RSG
Services ordered 2,500 electric refuse trucks from the upstart manufacturer and deliveries start in three years.

The work trucks are a variation of the Nikola Tre battery semi that goes into production in Germany around the end of this year. Units for Republic will be built at Nikola’s U.S. factory that’s under construction in Coolidge, Arizona. The zero-emission vehicles will offer more than 150 miles of range and handle up to 1200 cans per charge, Phoenix-based Nikola said. 

The order is the biggest to date for electric trash trucks in the U.S., and Republic has an option to expand it to up to 5,000 vehicles, Nikola said, without providing details on the value of the deal or a price per truck.

“The refuse market is one of the most stable markets in the industry and provides long-term shareholder value,” Nikola founder and Executive Chairman Trevor Milton said. “The Nikola Tre powertrain is ideal for the refuse market as it shares and uses the same batteries, controls, inverters and e-axle. By sharing the Tre platform, we can drive the cost down for both programs by using the same parts.”

Prior to the announcement, Nikola said it had more than 14,000 orders for hydrogen fuel cell trucks. Beer brewer Anheuser-Busch is awaiting hundreds of those vehicles that go into production in Arizona in 2023. The company, which listed its shares on Nasdaq
NDAQ
in June, this month said it had an $86.6 million net loss for the quarter that ended June 30. Nikola doesn’t predict meaningful sales of battery and hydrogen-powered semi-trucks for at least two years.

On-road tests of the refuse trucks start in 2022, with deliveries for Republic getting underway in 2023. The vehicle’s batteries will hold up 720kWh of electricity and be equipped with automated side and front-end loaders. Republic is assisting in the design, Nikola said. 

Nikola shares jumped 12% to $41.16 in morning Nasdaq trading.



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