Ford Beats GM To Invest $500M In Rivian, Enter Strategic Partnership On EVs

Ford Motor Company F announced Wednesday a strategic partnership with and $500 million minority investment in Michigan-based Rivian Automotive.

As part of the arrangement, Ford will use Rivian’s platform in a new battery electric vehicle, and it will add Joe Hinrichs, president of Automotives, to Rivian’s board of directors.

Why It’s Important

Rivian expects to begin deliveries on two vehicle models late next year. The R1T and R1S boast a range of 400 miles and are expected to sell for $68,000. The all-electric pick-up and SUV directly compete with Tesla Inc TSLA’s lineup.

“As we continue in our transformation of Ford with new forms of intelligent vehicles and propulsion, this partnership with Rivian brings a fresh approach to both,” Ford President and CEO Jim Hackett said in a press release. “At the same time, we believe Rivian can benefit from Ford’s industrial expertise and resources.”

The agreement is big news for Ford as it struggles to match pace with rival automakers.

In February, General Motors Company GM was said to be in talks to invest in the electric-vehicle startup. Shortly after, Rivian announced a $700 million investment round led by Amazon, Inc. AMZN but made no mention of GM.

As of yet, Rivian remains an independent company.

What’s Next

The investment remains subject to regulatory approval. The companies will reveal more information on the deal during a Wednesday conference call.

Ford' stock last closed at $9.50 per share.

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RJ Scaringe, Rivian founder and CEO, and Ford Executive Chairman Bill Ford announce a $500 million Ford investment in Rivian. Courtesy photo.