Nikola Corporation had a significant safety defect in the battery modules used in its electric semi trucks that can result in fires. Yet, the company was quick to claim “foul play” when five trucks caught on fire at its headquarters last week.
Nikola says that it is still investigating the situation.
The Phoenix fire department was still investigating the fire at the time Nikola made that statement. We contacted the fire department to ask for an update on the investigation when it is available, but we haven’t received an update yet.
In the meantime, we received concerning information about the battery modules that Nikola uses in its electric trucks, which company insiders believe could have led to the fire.
Nikola gets its battery modules for its Tre semitruck from Romeo Power, a company that it acquired last year after already being its main client for battery pack design and manufacturing. Romeo designed and produced the Hermes and Legion battery modules for the Nikola Tre.
Last year, engineers working on the battery modules detected a major problem where the cells were corroded and would self-discharge.
Electrek saw an internal report that investigated the issue:
A team inspected a number of modules in production, and many had the same issue.
They eventually tracked the problem down to the laser welding puncturing some of the battery cells in the modules.
The tests in the report were performed on the Hermes module because, unlike the Legion module, it doesn’t have potting on the cells, which can hide the puncture issue, but the problem was first identified in the Legion module, which is the one that was delivered to Nikola during the time it started production of the Tre, according to a source familiar with the matter.
Electrek was shown a video of the problem with the cells corroding within only two cycles in some cases:
The corrosion can create heat generation and increase resistance at the joint.
It can create several problems, including lithium plating and an imbalance in the voltage delta, which was mentioned in Romeo Power’s report on the issue:
These issues could all lead to potential thermal events in the battery packs, according to the insider, especially as they continue to cycle.
According to a former Romeo employee with knowledge of the problem, engineering executives recommended shutting down the production of the modules, but Susan Brennan, who was CEO of Romeo at the time, decided to keep production going and to try to fix the issue in parallel.
Electrek reached out to Brennan for an interview, but we didn’t get a response.
Nikola’s leadership was also made aware of the issue, but they already had millions of dollars worth of battery modules meant for its electric semitrucks, which the company was in a hurry to bring to production as it was hemorrhaging cash.
On top of it, the relationship of buyer-supplier between Romeo and Nikola was blurred now that the latter was acquiring the former.
A company insider told Electrek that Romeo kept producing potentially damaged battery modules for Nikola, and it is possible some of those battery modules could have made it into Nikola trucks.
While we can’t confirm that it led to the trucks catching on fire at its headquarters last week, it is a possibility, as punctured cells can lead to thermal events in batteries.
We contacted Nikola about this issue, and the company acknowledged that they were aware of the problem, but they believe no damaged modules have made their way into Nikola production trucks.
A spokesperson wrote in an email:
For production Nikola vehicles, Nikola requested Romeo not to ship known leaking modules. When weld issues were identified at Romeo’s end-of-line process, a quarantine process was implemented which required performance of a thorough inspection on every module, including end-of-line functionality checks. To our knowledge and based upon assurances made by our supplier Romeo, Nikola did not put any modules with weld issues in our production vehicles.
They claim to know that based on “assurances made by [their] supplier Romeo.” Romeo is now owned by Nikola, and we have seen evidence that the problem was ongoing when Nikola was producing the Tre. A company insider disputed that there was “a quarantine process.”
Also, it’s hard to confirm which modules have punctured cells, as the Legion module has potting hiding the joints of the cells.
A Nikola spokesperson tried to convince Electrek that the problem was only with the Hermes module while the Legion module was the one that ended up in the Tre, but a source familiar with both modules told Electrek that the cell puncture issue was first identified on a Legion module at Romeo Power’s Vernon facility. It was also identified in the production modules at the Cypress facility later on.
On top of the known battery problem, a company insider told Electrek that Nikola’s claim of “foul play” was a stretch. We were shown reports and videos of fire resistance testing showing the battery modules surviving extended exposure to powerful flames:
A company insider familiar with the battery modules told Electrek that “you could literally throw burning fuel on these packs and unless it’s sustained for a long period of time, you wouldn’t even notice.” Therefore, the insider finds it hard to believe that someone was able to light the trucks on fire – leading to battery pack fires.
Obviously, the situation looks better for Nikola if someone had set the trucks on fire rather than the fire potentially originating from the batteries.
When asked by Electrek if the company is still considering “foul play,” Nikola said that it is “not ruling out anything” and it is running “multiple investigations” that “could take weeks.”
The fire comes at a difficult time for Nikola. The company has only a few weeks left to convince its shareholders to let them issue more shares in order to raise more cash to keep the company going.
Issuing more shares would further dilute Nikola’s stock, which is already down almost 94% over the last two years.
Electrek’s Take
Obviously, we need an independent investigation into this issue by experts, but it is not a good look.
As for the foul play claim, I feel like we would already have clear information on this if it were true. I doubt that Nikola wouldn’t have cameras pointed at what was millions of dollars worth of brand-new electric trucks. If there had been any foul play, it would have been identified and made public by now.
On the other side, I saw clear evidence that Nikola had a major defect in its battery modules and solid insider sources that say those modules were shipped to Nikola with no clear evidence that the problem was ever fully solved before it produced the Tre truck.
The question seems to be if Nikola really understood the situation or not and the risk that came with using the modules amid the acquisition of Romeo, but it’s not a good look either way.
Normally, I’d find it hard to believe that a company would knowingly take the risk of putting those modules inside its vehicles, but it’s not impossible, considering the company was under tremendous pressure to deliver the truck.
Nikola has been working hard to distance itself from the era of Trevor Milton, its founder, and all the fraud that happened at the time, but I certainly wouldn’t be surprised to see them cut corners again. But it sounds like there’s also the potential that Nikola thought that the Legion modules were fine when they put them in their trucks.
And before all the NKLA investors jump on me for this report, no, I don’t have and never had a short position on Nikola. I would love for Nikola’s electric truck program to be successful, as I think removing emissions from trucking is an extremely important mission.
With that said, it needs to be made safely and sustainably. That doesn’t seem to be the case with Nikola right now.
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In a joint statement, French and German economists have called on governments to adopt “a common approach” to decarbonize European trucking fleets – and they’re calling for a focus on fully electric trucks, not hydrogen.
France and Germany are the two largest economies in the EU, and they share similar challenges when it comes to freight decarbonization. The two countries also share a border, and the traffic between the two nations generates major cross-border flows that create common externalities between the two countries.
And for once, it seems like rail isn’t a viable option:
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While rail remains competitive mainly for heavy, homogeneous goods over long distances. Most freight in Europe is indeed transported over distances of less than 200 km and involves consignment weights of up to 30 tonnes (GCEE, 2024) In most such cases, transportation by rail instead of truck is not possible or not competitive. Moreover, taking into account the goods currently transported in intermodal transport units over distances of more than 300 km, the modal shift potential from road to rail would be only 6% in Germany and less than 2% in France.
That leaves trucks – and, while numerous government incentives currently exist to promote the parallel development of both hydrogen and battery electric vehicle infrastructures, the study is clear in picking a winner.
“Policies should focus on battery-electric trucks (BET) as these represent the most mature and market-ready technology for road freight transport,” reads the the FGCEE statement. “Hence, to ramp-up usage of BET public funding should be used to accelerate the roll-out of fast-charging networks along major corridors and in private depots.”
The appeal was signed by the co-chair of the advisory body on the German side is the chairwoman of the German Council of Economic Experts, Monika Schnitzer. Camille Landais co-chairs the French side. On the German side, the appeal was signed by four of the five experts; Nuremberg-based energy economist Veronika Grimm (who also sits on the National Hydrogen Council, which is committed to promoting H2 trucks and filling stations) did not sign.
With companies like Volvo and Renault and now Mercedes racking up millions of miles on their respective battery electric semi truck fleets, it’s no longer even close. EV is the way.
On today’s tariff-tastic episode of Quick Charge, we’ve got tariffs! Big ones, small ones, crazy ones, and fake ones – but whether or not you agree with the Trump tariffs coming into effect tomorrow, one thing is absolutely certain: they are going to change the price you pay for your next car … and that price won’t be going down!
Everyone’s got questions about what these tariffs are going to mean for their next car buying experience, but this is a bigger question, since nearly every industry in the US uses cars and trucks to move their people and products – and when their costs go up, so do yours.
New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.
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GE Vernova has produced over half the turbines needed for SunZia Wind, which will be the largest wind farm in the Western Hemisphere when it comes online in 2026.
GE Vernova has manufactured enough turbines at its Pensacola, Florida, factory to supply over 1.2 gigawatts (GW) of the turbines needed for the $5 billion, 2.4 GW SunZia Wind, a project milestone. The wind farm will be sited in Lincoln, Torrance, and San Miguel counties in New Mexico.
At a ribbon-cutting event for Pensacola’s new customer experience center, GE Vernova CEO Scott Strazik noted that since 2023, the company has invested around $70 million in the Pensacola factory.
The Pensacola investments are part of the announcement GE Vernova made in January that it will invest nearly $600 million in its US factories and facilities over the next two years to help meet the surging electricity demands globally. GE Vernova says it’s expecting its investments to create more than 1,500 new US jobs.
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Vic Abate, CEO of GE Vernova Wind, said, “Our dedicated employees in Pensacola are working to address increasing energy demands for the US. The workhorse turbines manufactured at this world-class factory are engineered for reliability and scalability, ensuring our customers can meet growing energy demand.”
SunZia Wind and Transmission will create US history’s largest clean energy infrastructure project.
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