What you need to know:
- Nikola and ITD Industries are clashing over a truck, equipment, warranty costs, and a failed hydrogen station in Ontario.
- ITD filed a lawsuit in Canada, but Nikola insists the U.S. Bankruptcy Court in Delaware has jurisdiction.
- Walmart Canada returned two Nikola Tre FCEV semis after Nikola's bankruptcy, and Lucid Motors is blocked from accessing purchased assets by ITD.
- The failed Ontario hydrogen station project highlights challenges for commercial FCEV trucks and hydrogen infrastructure expansion in Canada.
Eight months after filing for Chapter 11 bankruptcy, Nikola is embroiled in a legal dispute with Canadian dealer and trailer manufacturer ITD Industries regarding a loaner tractor, related equipment and parts, reimbursement for hundreds of hours of warranty work, and expenses tied to a failed hydrogen refueling station in Ontario, according to court documents.
ITD is trying to sue Nikola in an Ontario court, but Nikola's lawyers argue that only the U.S. Bankruptcy Court for the District of Delaware has jurisdiction, since Nikola is an American company. A hearing on the matter is taking place today, October 31.
The dispute represents another setback for the market expansion of hydrogen fuel cell (FCEV) commercial vehicles, such as the Nikola Tre semi, despite the best efforts of government agencies and companies like ITD.
"ITD was a really good partner but was just, unfortunately, another casualty due to a lack of available and affordable hydrogen," a former Nikola official told Clean Trucking under condition of anonymity.
Walmart Canada and Lucid Motors' involvement
The conflict also involves two other major industry players: Walmart Canada and Lucid Motors. For a time, the retail giant was interested in purchasing a fleet of Nikola Tre Class 8 FCEV semis as part of its efforts to abide by Canadian environmental laws.
Ultimately, Walmart Canada took delivery of just two semis, which were returned to the manufacturer shortly after Nikola's February 2025 bankruptcy filing, the former Nikola employee confirmed.
As for Lucid's role, the luxury EV manufacturer purchased Nikola's Arizona factory and other assets—including equipment for the Nikola battery-electric semi—at an auction last April. Some of that equipment remains in ITD's possession, and the company is refusing to release it to Lucid due to the ongoing legal dispute.
Meanwhile, an Ontario hydrogen refueling station—a joint project between ITD and HYLA, Nikola's energy production and supply division—has failed to materialize. ITD reportedly spent hundreds of thousands of dollars on design, construction, and permitting, and is seeking reimbursement as part of its lawsuit against Nikola.
Ontario Premier Doug Ford (center) at the HYLA hydrogen refueling station opening ceremony alongside Nikola President and CEO Steve Girsky (second from right) on July 30, 2024 at ITD Industries' headquarters in Etobicoke, ON.HYLA
Nikola's demands
In its own legal motion, filed on October 14 in Delaware, Nikola asked the court to order ITD to comply with the Lucid sales order, release the purchased assets to Lucid, and award an unspecified amount in fees and costs as civil contempt sanctions.
The motion also seeks to enforce the automatic stay against ITD, compel access to estate property, and award additional fees and costs to Nikola as sanctions for ITD's alleged willful violation of the automatic stay.
Additionally, Nikola is demanding that ITD return one of its battery-electric semis, identified in court documents as "Demo BEV130." The truck was originally shipped through Port Huron into Canada around October 23, 2024, and is believed to be among the assets whose return ITD is allegedly obstructing.
The truck's whereabouts are unclear, but it's likely still somewhere in Ontario.
Good intentions, disappointing results
ITD Industries did not respond to Clean Trucking's repeated requests for comment before going to press, nor did the Office of Ontario Premier Doug Ford. Lucid Motors replied to our inquiry but had "no comment at this time."
The former Nikola official, meanwhile, further explained that ITD's hydrogen fueling station was "supposed to be a big deal but nothing panned out. ITD made a huge investment. As far as I now, nothing really happened. There was supposed to be a lot of action. I don't think the station ever opened but some of the materials got delivered.
That's the whole Nikola thing. A bunch of promises were made by companies like ITD. Sometimes by others, like investors. The idea was ITD was going to be sort of the Nikola arm in Canada. It was all based on the concept that a bunch of these pieces were supposed to come together with reasonably priced hydrogen available. It was a case of ITD making an investment. They made a promise of purchasing a certain amount of vehicles."
The bottom line, it seems, is that all involved parties had good intentions but Nikola's bankruptcy was the final nail in the coffin.
"The Ontario government trusts ITD. They're a good local company. They probably said something like 'hey listen, we [Ontario, Nikola and ITD] can mutually benefit here.' It makes perfect sense in isolation. Did they do due diligence with Nikola? I don't know, but the issue is always the same: a lack of investment. Nikola had to get its hydrogen fuel cell truck released to the market. We had to show people we're actually doing something and that's the only way to get investors—especially if you've had a checkered past like Nikola. Everybody else is only testing [commercial FCEV semis] but we were the only the people out there selling. It was all one thing after the other and the leg was pulled out from the stool. It all came down pretty quickly."
