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General Motors is taking a stake in electric vehicle maker Nikola Corp. in a deal that will eventually deliver $4 billion in benefits to GM as it commercializes its EV technology. 

The partnership, which is a 10-year agreement, will ultimately reduce costs for each company as GM pursues its all-electric vehicle strategy.

The deal announced Tuesday allows Nikola to exchange $2 billion in newly issued stock for services and access to GM’s parts and components. Nikola has yet to make any of the heavy-duty hydrogen fuel cell trucks it is developing. GM also has the right to nominate one board director at Nikola.

GM will “engineer, homologate, validate and manufacture the Nikola Badger battery electric and fuel cell versions,” the companies said in a statement. The Badger is a fuel-cell electric pickup expected to go into production by the end of 2022.