Lucid Motors has announced that it acquired some of Nikola Motor’s assets out of its bankruptcy, including its factory, and it will offer jobs to over 300 of its employees.

Nikola, a manufacturer of electric and hydrogen trucks, went bankrupt earlier this year after several tumultuous years.

Now, Lucid Motors, an electric vehicle manufacturer, has announced that it purchased some of Nikola’s assets out of a bankruptcy auction.

The company wrote in a press release:

Lucid Group, Inc. (Nasdaq: LCID), maker of the world’s most advanced electric vehicles, today announced it has reached an agreement to acquire select facilities and assets in Arizona previously belonging to Nikola Corporation, subject to approval by the U.S. Bankruptcy Court for the District of Delaware. The transaction does not include the acquisition of Nikola’s business, customer base, or technology related to Nikola’s hydrogen fuel cell electric trucks.

In Arizona, Lucid’s Casa Grande factory, where it produces the Air and Gravity EVs, is only about 25 minutes away from Nikola’s Coolidge factory, where it used to assemble its trucks.

Lucid confirmed that it is taking over this facility and Nikola’s headquarters in nearby Phoenix:

As part of the agreement, Lucid will take over Nikola’s former Coolidge manufacturing facility (680 E Houser Rd, Coolidge, AZ), as well as the Phoenix facility (4141 E Broadway Rd, Phoenix, AZ) previously used as Nikola’s headquarters and product development center. These buildings collectively add more than 884,000 square feet to Lucid’s Arizona footprint. Most of this space is comprised of state-of-the-art manufacturing and warehousing buildings, which executes against Lucid’s prior planned expansion in Arizona. These facilities also include development equipment with extensive battery and environmental testing chambers, a full-size chassis dynamometer, machining equipment, and more.

The deal is valued at $30 million in cash and non-cash considerations.

As it takes over those facilities, Lucid plans to offer “more than 300 former Nikola employees” jobs in Arizona:

Additionally, Lucid plans to offer employment to more than 300 former Nikola employees in roles across Lucid’s Arizona facilities. These offers will encompass various technical salaried and hourly positions including manufacturing engineering, software, assembly, vehicle testing, and warehouse support as Lucid welcomes employees with strong backgrounds in EV technology and further supports its local community.

Marc Winterhoff, Interim CEO at Lucid, commented on the announcement and hinted that the new facilities and workforce would help Lucid toward bringing its next vehicle platform to production:

“As we continue our production ramp of Lucid Gravity and prepare for our upcoming midsize platform vehicles, acquiring these assets is an opportunity to strategically expand our manufacturing, warehousing, testing, and development facilities while supporting our local Arizona community. We are delighted to extend employment offers to more than 300 former employees, who bring valuable industry experience, and together with our outstanding teams, will continue powering Lucid’s industry-leading innovation.”

Lucid is mainly known for the Air, a super-efficient and long-range electric luxury sedan, and it recently launched the Gravity, an SUV based on the same platform.

Now, it plans to develop a new vehicle platform to deliver smaller and cheaper vehicles.

Electrek’s Take

This makes sense. While Lucid has a lot of operations in California, they were neighbors in Arizona when it came to manufacturing operations.

It may be able to utilize some of Nikola’s manufacturing equipment and quickly put the former Nikola workers to work, reducing the bankruptcy’s impact on local employment.

Lucid has its own financial problems as it’s not yet profitable and relies on raising more capital, but it is undoubtedly in a much more solid financial situation than Nikola has been over the last few years.

Also, $30 million in cash and non-cash considerations is pretty cheap.