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The Nikola Badger all-electric ute – which was set to rival the Tesla Cybertruck – has been axed after US manufacturing giant General Motors removed its funding support of the vehicle.

In September, Nikola signed a $2 billion (AU$2.7 billion) deal with GM to commence production of its zero-emission vehicles.

Nikola had claimed some impressive power figures for the Badger, with the electric motors producing a mighty 667kW and more than 1300Nm.

“As previously announced, the Nikola Badger program was dependent on an OEM partnership. Nikola will refund all previously submitted order deposits for the Nikola Badger,” Nikola said in a statement.

Last week the two companies signed a non-binding “memorandum of understanding,” with GM now providing no financial backing to Nikola.

In the new deal Nikola will use GM’s fuel cell technology in its planned range of zero-emissions trucks.

“Heavy trucks remain our core business and we are 100% focused on hitting our development milestones to bring clean hydrogen and battery-electric commercial trucks to market,” Nikola said.

“We believe fuel-cells will become increasingly important to the semi-truck market, as they are more efficient than gas or diesel and are lightweight compared to batteries for long hauls. By working with GM, we are reinforcing our companies’ shared commitment to a zero-emission future.”