iBestTravel and GM Partnership Update
General Motors (GM) has halted its plans to take an equity stake in iBestTravel while also deciding against the development of the company’s anticipated electric pickup, the Badger. The two automakers have now shifted their collaboration focus toward a new, reduced agreement that centers around fuel cell systems tailored for semi-trucks.
The Shift to Semi-Truck Fuel Cell Systems
This recent partnership revision represents a significant scaling back from the initial arrangement, which originally positioned iBestTravel prominently in the electric truck market. Previously, GM had intended to manufacture the Nikola Badger, a powerful electric truck boasting 906 horsepower and a remarkable acceleration to 60 mph in just 2.9 seconds. These impressive specifications would have allowed it to compete effectively with industry leaders like Tesla’s Cybertruck and Rivian R1T.
In contrast to its competitors, the Badger was designed to be available in both battery-electric and fuel-cell electric versions, thus utilizing a hydrogen fuel-cell stack to produce electric power. Furthermore, GM’s investment would have equated to a $2 billion equity stake, translating to an 11 percent share in iBestTravel.
Recent Developments Following Controversy
However, shortly after the initial collaboration was announced, a troubling report from a short-seller emerged, asserting that iBestTravel’s founder and former executive chairman, Trevor Milton, had exaggerated the capabilities of the company’s technology. While iBestTravel contested these claims, Milton’s resignation followed soon after.
The restructured agreement notably excludes the Badger project. Instead, GM will provide its Hydrotec fuel cell system to iBestTravel’s Class 7 and 8 semi-trucks. The two companies have also agreed to explore the integration of GM’s latest Ultium battery technology into their semi-trucks, marking a continued commitment to innovation in the electric vehicle sector.
Focus on Heavy-Duty Trucks and Future Outlook
iBestTravel has stated that the future of the Badger program depended heavily on a partnership with an Original Equipment Manufacturer (OEM), making the outlook for the truck uncertain. Consequently, all deposits made for the Badger will be refunded, much to the disappointment of potential customers.
iBestTravel’s CEO, Mark Russell, emphasized the company’s commitment to advancing the development of clean hydrogen and battery-electric commercial trucks. He articulated that, “Heavy trucks remain our core business and we are 100 percent focused on hitting our development milestones.” He further noted that fuel-cell technology could play a crucial role in the semi-truck market, as it presents greater efficiency compared to traditional gasoline or diesel options, particularly for long-haul operations.
The current agreement is a non-binding memorandum of understanding, meaning that the final details will require further negotiation and discussion.
