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Ford Invests $500 Million In Rivian, a Battery Supplier

By Minjun Park
1 min read
In this article (5)

Rivian announced an equity investment of $500 million from Ford Motor Company. In addition to the investment, the companies have agreed to work together to develop an all-new, next-generation battery electric vehicle for Ford’s growing EV portfolio using Rivian’s skateboard platform. Rivian already has developed two clean-sheet vehicles with adventurers at the core of every design and engineering decision. The company’s launch products – the five-passenger R1T pickup and seven-passenger R1S SUV – will deliver up to 644 kilometres of range and provide an unmatched combination of performance, off-road capability and utility, starting in late 2020.

RJ Scaringe, Rivian founder and CEO said, “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.”

Ford intends to develop a new vehicle using Rivian’s flexible skateboard platform. This is in addition to Ford’s existing plans to develop a portfolio of battery electric vehicles. As part of its previously announced $11 billion EV investment, Ford already has confirmed two key fully electric vehicles: a Mustang-inspired crossover coming in 2020 and a zero-emissions version of the best-selling F-150 pickup.

Rivian remains an independent company. The investment is subject to customary regulatory approval. Following Ford’s investment, Joe Hinrichs, Ford’s president of Automotive, will join Rivian’s seven-member board.

Bill Ford, Ford’s executive chairman said, “We are excited to invest in and partner with Rivian. I have gotten to know and respect RJ, and we share a common goal to create a sustainable future for our industry through innovation.”

Questions & Answers

Q.

What is Rivian's core business, and what products do they currently have?

A.

Rivian is a battery supplier focused on electric vehicles. They have developed two clean-sheet vehicles: the five-passenger R1T pickup and the seven-passenger R1S SUV, which are due to launch in late 2020.

Q.

How will Ford and Rivian collaborate after this investment?

A.

The companies will work together to develop an all-new, next-generation battery electric vehicle for Ford. This new vehicle will utilise Rivian’s flexible skateboard platform as part of Ford's growing EV portfolio.

Q.

What are Ford’s existing plans for electric vehicles, separate from the Rivian partnership?

A.

Ford has an $11 billion EV investment plan already in place. This includes a Mustang-inspired crossover due in 2020 and a zero-emissions version of the F-150 pickup, both fully electric.

Q.

Will Rivian remain an independent company after Ford's investment?

A.

Yes, Rivian will remain an independent company. As part of the agreement, Ford's president of Automotive, Joe Hinrichs, will join Rivian's seven-member board.

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