Nikola’s rollout of hydrogen trucks hitting supply-chain hurdles

Nikola began delivering its first hydrogen-powered trucks at the end of last year and expects to deliver up to 350 of the big rigs this year. 

Supply-chain shortages are slowing the rollout of Nikola’s hydrogen-powered big rigs.

The hangups are hitting as demand for zero-emission big rigs grows, especially in California, where new emissions regulations and generous grants are making the Class 8, heavy-duty trucks more attractive.

Nikola is leading a pack of truck makers, including Kenworth and Hyundai Motor, developing hydrogen fuel-cell big rigs. The clean-energy trucks refuel faster than battery-electric trucks and can travel two or three times as far between refueling, but they also are far more expensive to buy than diesel big rigs.

Nikola began delivering its first hydrogen-powered trucks at the end of last year and expects to deliver up to 350 of the big rigs this year.

Company executives said it cost about $679,000 per vehicle to build the trucks in the fourth quarter, in part because supplier delays meant parts had to be flown in from Europe. They said the average selling price of $351,000 per vehicle in the same period was dragged down because of legacy deals.

Nikola officials say they expect selling prices will rise this year and per-truck production costs will fall as parts deliveries improve, allowing the truck maker to use cheaper ocean shipping.

Nikola is opening its own hydrogen refueling stations to support demand for its trucks, but for now it is limiting the stations to California. It opened its first refueling station in Ontario, Calif., in February and expects eight more stations to open in the state by the end of June.

A shortage of places to refuel and recharge zero-emission trucks is a major hurdle for carriers investing in the vehicles. The Biden administration is trying to guide and speed up investments in the infrastructure and recently launched a strategy laying out where and when refueling stations will be needed over the next 15 years.

The availability and cost of fuel is also a major impediment for hydrogen trucks. The Biden administration is awarding $7 billion in grants for seven regional hubs to boost production and lower the cost of clean hydrogen, which is currently several times more expensive than diesel.

Others in the trucking industry share the concern that investing in any one technology, such as hydrogen or battery-electric, could prove a costly mistake if a particular technology or company falls out of favor or goes out of business.