Rivian and Ford break agreement to make electric cars together

Rivian and Ford break agreement to make electric cars together

Although Rivian is having a great time having the R1T, the pickup considered the most equipped and with great autonomy, Ford has decided to put aside its alliance with Rivian to manufacture EVs. Ford CEO says they have enough technology to produce electric cars without Rivian’s interference.

Rivian and Ford break agreement to make electric cars together

With the advent of electric cars, Ford and Rivian planned to form an alliance to form an electric vehicle joint venture , however they will no longer collaborate on a battery- powered model.

The news broke Friday after an interview with Ford CEO Jim Farley . The Blue Oval boss expressed confidence in Ford’s ability to build its own electric vehicle, a sign of growth and improvement over this time two years earlier. That’s when a Ford supplier came up with the idea of ​​an electric SUV with the Lincoln badge that built on the Rivian foundation.

Rivian and Ford break agreement to make electric cars together

Ford is confident in its ability to produce EV’s

Previously, Rivian was in a position to build an electric vehicle under Ford’s luxury arm. Just a few months after the news broke, and following an influx of $ 500 million from Ford, the deal fell through due to pressure from COVID-19. At the time, this left Ford and Rivian to work out their plans for a different joint venture; now it seems that will not happen.

 

“Right now, we are increasingly confident in our ability to win in the electrical space , ” Farley explained . “When compared today with when we originally made that investment, a lot has changed: about our capacity, about the direction of the brand in both cases, and now we have more certainty of what we have to do. We want to invest in Rivian: we love its future as a company, but right now we are going to develop our own vehicles, “he added.

According to Farley, a deciding factor was the need to marry Ford’s internally developed software with Rivian’s EV architecture. Farley cited the difference in business models between the two companies, but applauded Rivian for having “the best cooperation [Ford has had] with another company.”

Rivian confirmed the mutual breakdown of the company’s development

“As Ford has scaled its own EV strategy and demand for Rivian vehicles has grown, we have mutually decided to focus on our own projects and deliveries,” a Rivian spokesperson wrote in an email. ” Our relationship with Ford is an important part of our journey, and Ford continues to be an investor and ally on our shared path to an electrified future .”

Rivian is said to be considering a second plant to meet consumer demand, as well as obligations to its biggest sponsor, Amazon . Meanwhile, Ford, according to Farley, has already outgrown the means of production of its three bare metal production facilities that were announced in September. It is not yet clear how much battery capacity Ford will need, but apparently 129 gigawatt-hours of annual production is not enough.

“We already need more than planned,” Farley said during the interview. “I am not going to give you a number, but it is very clear that we will have to move soon, and there will be more.”

 

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