Electric heavy-duty truck startup Nikola appears to have leapt ahead of its rivals – its previously-announced partnership with IVECO now blossoming into a plan to begin building production trucks next year at an existing IVECO factory in Germany.
The challenge of large-scale production has been seen as a major stumbling block for startups Nikola, Tesla and their like.
But IVECO and Nikola say that IVECO's current chassis engineering hub in Ulm will be upgraded to produce the Nikola TRE battery electric HD truck – and, eventually, a fuel-cell electric version.
The TRE is a combination of the IVECO S-Way platform and Nikola's electric truck technology, controls and infotainment. 
Testing is expected to begin in the middle of this year, with prototypes to be showcased at the IAA 2020 commercial vehicle show in Germany in September. 
CNH Industrial president of commercial and speciality vehicles Gerrit Marx says that "by drawing on our gold-standard, world class manufacturing sites….where the IVECO S-Way is produced, we are able to accelerate final assembly, powertrain integration and high-end customisation of the Nikola TRE for a timely market introduction in 2021."
The first models to enter production will be the battery-electric 4x2 and 6x2 tractor units with modular and scalable batteries – with a capacity of up to 720kWh and an electric powertrain that delivers up to 480kW of continuous power output.
IVECO's Ulm factory is located in a region determined to become a hub for fuel-cell mobility, with an expert workforce and research labs already present….and with support from regional government to help fund research and development projects and from the German Federal government, specifically for hydrogen research.
CNH Industrial CEO Hubertus Mühlhäuser says: "Our European joint-venture with Nikola and today's announcement is real proof that zero-emission long-haul transport is becoming a reality – resulting in tangible environmental benefits for Europe's long distance hauliers and its citizens."
The first stage of the project will see the JV partners invest 40 million Euros to upgrade the existing manufacturing facility, which will focus on final assembly of the vehicle. Start of production is anticipated within the first quarter of 2021, with deliveries of the Nikola TRE beginning later in the year.
Nikola Motor Company CEO Trevor Milton says: "The Nikola TRE is proving to be the most advanced articulated truck in the world and will continue to set the standard for zero-emission vehicles today and in the future.
"The decision to volume produce the TRE in the city of Ulm is a fitting example of how to create jobs, foster innovation, provide certainty to new zero-emission parts suppliers and serve as an example to other OEMs. 
"The world is ready for zero-emission freight transportation, and the joint venture between Nikola and IVECO will be the first to deliver. I look forward to seeing the first production vehicles come off the line."
The Ulm factory will receive module supplies from IVECO factories in Spain, enabling a rapid ramp-up to meet expected customer demand. FCEVs, built on the same platform, will be tested during 2021 for an expected market launch in 2023.
The IVECO/Nikola JV is part of a wider partnership intended "to accelerate industry transformation towards emission neutrality of Class 8 heavy-duty trucks in North America and Europe, through the adoption of fuel-cell technology," the two companies say. 
"The primary focus of the collaboration is to leverage each partner's respective expertise to successfully deploy zero-emission heavy-duty trucks and to disrupt the industry with an entirely new business model."