Ford investing $500 million in electric vehicle startup

Ford announced Wednesday it is investing $500 million in electric vehicle startup Rivian.

Ford will become a minority partner in the company and work with the startup on a new Ford electric vehicle based on Rivian underpinnings.

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“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 statement.

“At the same time, we believe Rivian can benefit from Ford’s industrial expertise and resources.”

The deal is subject to regulatory approval. If approved, Rivian will remain an independent company. Joe Hinrichs, Ford’s president of automotive, will join the startup’s seven-member board.

Rivian, based outside of Detroit, released an electric pickup truck recently and will start selling an SUV late next year.

“This strategic partnership marks another key milestone in our drive to accelerate the transition to sustainable mobility,” Rivian CEO RJ Scaringe said in a statement.

“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 has already invested $11 billion in electric vehicles and is set to roll out a Mustang-inspired crossover in 2020 and a zero-emissions version of the best-selling F-150 pickup.

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