The Ford Motor Company (NYSE: F) has announced on Wednesday that it is going to invest USD 500 Million in EV startup Rivian Automotive LLC, and will build an electric vehicle using Rivian’s tech.
Ford said that it intends to develop a new vehicle using Rivian’s skateboard platform, which includes the battery pack, the electric drivetrain, and the electrical architecture as a part of an addition to their already existing strategic plans for the development of a portfolio related to the electric vehicles batteries.
The new vehicle won’t affect the two EVs that Ford has been developing, an electric F-150 and Mustang-inspired crossover, Ford CEO Jim Hackett said on a call with investors and reporters.
“The tactful collaboration would be marking one of the major milestones in the mission to trigger the change and revolutionizing towards more sustainable flexibility,” said RJ Scaringe, Rivian founder, and CEO. “Ford has a long-standing commitment to sustainability, with Bill Ford being one of the industry’s earliest advocates, and we are excited to use our technology to get more electric vehicles on the road.”
Just two months ago, Rivian raised USD 700 Million in a funding round led by Amazon. At that time, there were rumors that GM would also invest, but it didn’t end up happening.
“We possess extensive experience in this particular area of research,” This was said by Joe Hinrichs, who is currently the President of Automotive Operations at Ford incorporation, who joins Rivian’s board of directors, said on the call. “But there’s also a lot we don’t know, and there’s also things we can still learn. We don’t have all the answers, and we don’t pretend to.” Hinrichs also said there’s “a lot we can learn” from partnering with Rivian