Ford Invests in Rivian for Electric Vehicle Innovation

Ford has partnered with Rivian, an electric vehicle manufacturer, to accelerate innovation in the field.

This partnership is a significant step for Ford, allowing them to tap into Rivian's expertise in electric vehicle technology.

The investment will enable Ford to leverage Rivian's capabilities in designing and manufacturing electric vehicles.

Rivian's innovative approach to electric vehicle design and production will help Ford stay competitive in the market.

Ford's investment in Rivian is a significant move, with the automaker putting in $500 million to help the electric truck startup develop its own next-generation electric vehicles.

Rivian has already gained momentum, with a target of 20,000 to 25,000 vehicles in the first two years of production and a goal of eventually producing 250,000 vehicles per year.

Ford's investment brings more than just capital to the table, as the company will also become a minority partner in Rivian, with Ford's president of automotive, Joe Hinrichs, joining Rivian's seven-member board.

Rivian's flexible "skateboard" platform will be used to develop a new vehicle, in addition to previously announced plans to build a portfolio of battery electric vehicles.

Ford's investment has also added a major client to Rivian's mix, with the company set to become a significant supplier of technology to other automakers.

In Central Illinois, Rivian is making a big splash. The electric truck startup has a 2.6 million-square-foot plant in Normal that it bought for $16 million in cash from a liquidation firm in January 2017.

About 70 employees are based in Normal, and the company has set an annual target of 20,000 to 25,000 vehicles over the first two years of production. This is just the beginning, as Rivian aims to eventually produce 250,000 vehicles per year.

Rivian will receive $49.2 million in state tax credits over 15 years if it meets employment and investment targets for the Normal facility. Those goals include creating 1,000 new jobs by 2024.

Rivian's IPO led to a bonanza for Ford, adding significant value to its market capitalization.

Ford made a whopping $8.2 billion in 2021 from its stake in Rivian, according to a filing with the U.S. Securities & Exchange Commission.

This gain is a result of Rivian's successful public offering of stock in November, making its founder and CEO R. J. Scaringe a billionaire.

Ford initially invested around $200 million in Rivian in 2019, and now owns more than 13% of the BEV maker's stock.

The Rivian stake has helped boost the value of Ford's own shares, lifting its market capitalization to about $100 billion, depending on the market's daily fluctuations.