General Motors plans to begin producing its first electric/hydrogen pick-up truck within the next two years as it makes moves against rival Tesla.
GM will team up with Arizona-based start-up Nikola to manufacture and produce its Badger pick-up truck in a $2bn (£1.53bn) deal.
Tesla vehicles are battery powered, while the Badger will work by combining hydrogen gas with oxygen.
It will compete with Tesla’s Cybertruck.
That vehicle is set to enter production late next year, as well as others planned by rivals including Ford.
As part of the GM deal, the automotive giant will receive an 11% stake in Nikola.
The Badger will officially be publicly unveiled in early December before going into production in 2022.
GM has also said it will supply hydrogen fuel cells to Nikola for its Class 7 and Class 8 semi-trucks.
Consumer confidence in electric vehicles has continued to grow in recent years.
In July, Tesla was estimated to be worth about three times the combined value of GM and Ford.
Earlier in the year, Nikola managed to become one of the world’s most valuable car manufacturers despite having never actually sold any of its vehicles.
The company is planning to install a network of hydrogen charging stations through the UK and Europe over the next year.
It is currently one of just a handful of companies pursuing the development of hydrogen-powered articulated lorries.
The partnership marks the second major announcement from GM after it revealed last week it would be teaming up with Honda in North America to help meet demand for cleaner vehicles.