Ford is investing $500 million in Rivian, an electric-automobile startup. The injection of money comes solely months after the Michigan-based mostly firm raised $700 million in a funding spherical led by Amazon.
In November, Rivian unveiled the primary two battery-powered EVs it plans to start out producing by the tip of 2020: the R1T, an electric pickup truck, and the R1S, an electrical SUV. Each automobile is anticipated to price greater than $68,000 and promote within the comfortable area. The pickup is expected to straight compete with Ford’s battery-powered F-150, which is because of launch in 2021. The SUV will go head-to-head with these already supplied by the likes of Tesla and Jaguar.
Rivian will doubtless put a few of the Ford cash in the direction of constructing its the US automobile manufacturing unit, which is finally anticipated to have an annual manufacturing capability of 250,000 autos. Rivian’s purpose is to promote 20,000 vehicles in 2021 and twice that in 2022. Different EV startups like Tesla and NIO have struggled to scale up manufacturing, and Rivian is prone to profit from Ford’s outdated-world abilities.
Rivian’s two deliberate automobiles share a skateboard-formed platform, which is constructed to deal with a big battery pack, suspension, axles, cooling system, and four electrical motors. In return for its funding, Ford will get entry to the skateboard platform to be used in its electrical autos, in addition to a seat on Rivian’s board.
Reuters reported in February that General Motors was in dialog with Rivian about investing within the startup. Ford appears to have crushed its rival GM. Neither Ford nor Rivian confirmed what stake the automobile large would get within the startup for its funding.