last year for $144 million. Romeo specializes in the design and manufacturing of lithium-ion batteries for commercial vehicle applications, and the transaction is said to save Nikola $350 million annually on battery-related costs. Romeo produces the Hermes and Legion battery modules for the Nikola Tre Class 8 semi truck.
The team investigating the matter found that several modules faced the same cell corrosion issue. They traced the issue to laser welding, which punctured battery cells in the modules. The cells were corroding within just two test cycles, potentially generating excess heat and increasing the resistance at the joint, which might have led to thermal events within the pack.
Moreover, engineers familiar with the issue suggested halting the production of faulty batteries, but Romeo’s then-CEO Susan Brennan reportedly decided to continue the production while initiating efforts to solve the problem parallelly. Nikola was said to have millions of dollars worth of modules for electric semi trucks, which it was in a rush to install into its trucks.