Ford is investing $500 million in electric pickup truck maker Rivian, saying the two copmanies will work together to develop a new battery for plug-in vehicles.
Ford is playing catch-up to a number of other automakers’ efforts to develop electric vehicles. It does not currently sell any pure electric vehicles, although it sells some plug-in hybrid cars.
Rivian, which has yet to start production of its electric trucks, has nevertheless attracted significant investment from many deep-pocket investors, including Amazon.
Ford CEO Jim Hackett says in a statement that the partnership will bring a fresh approach to Ford’s intelligent and electric vehicles. He says Rivian will benefit from Ford’s manufacturing expertise and resources.
Rivian will remain an independent company. But Ford President of Automotive Joe Hinrichs will get a seat on the startup’s seven-member board.
The deal is still subject to regulatory approval.
Rivian has a large engineering and administrative operation in the Detroit suburb of Plymouth Township, Michigan, as well as outposts in San Jose and Irvine, California, and Surrey, England. The company also is starting manufacturing operations in a 2.6-million-square-foot factory in Normal, Illinois, that was once used by Mitsubishi.
The company’s R1T pickup and R1S SUV that are supposed to have more than 400 miles of range on a single charge. The five-seat pickup is aimed at the market for off-road capable trucks with outdoorsy features, a market that electric vehicle competitor Tesla Inc. has not yet entered. A basic truck with smaller 230-mile (370 kilometers) battery pack will start under $70,000. A truck with the longer-range battery will be around $90,000. They’ll roll out in the U.S. first, then to other markets.
