Nikola Corp shares increased 0.7 percent on Thursday after the firm announced a partnership with PGT Trucking, a transportation provider.
The agreement between Nikola and PGT comprises a letter of intent (LOI) to lease 100 Nikola Tre heavy-duty fuel cell electric vehicles after completing a demonstration program (FCEVs).
"We believe our FCEVs will assist PGT in achieving their goals of continuously improving driver experience, reducing carbon emissions, and increasing operational efficiency while giving excellent value to their customers," said Pablo Koziner, Nikola's president of Energy and Commercial.
Scheduled maintenance and hydrogen fueling solutions will be included in the leasing arrangements, which are still being finalized.
Nikola claims that the Tre FCEV will have a range of up to 500 miles and that deliveries to PGT would begin in 2023 after production begins at its Arizona manufacturing facility.
"This agreement will allow us to provide progressive transportation options to our clients while aligning with corporate-driven sustainability efforts and decreasing their carbon footprint through novel energy sources," PGT Trucking president Gregg Troian said.