Rivian and Ford terminated the agreement on the joint production of electric vehicles

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Ford confident in its ability to build electric vehicles
Rivian confirms mutual development gap

Even though Rivian is having a big moment with the R1T, the pickup truck that is considered the most equipped and has the most autonomy, Ford has decided to abandon its alliance with Rivian to make electric vehicles. Ford CEO says they have enough technology to make electric cars without Rivian interference

With the advent of electric vehicles, Ford and Rivian planned to form a joint venture to produce electric vehicles, however they would no longer collaborate on developing a battery-powered model.

The news comes 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 from what it was two years earlier. That's when a Ford supplier came up with the idea of an electric SUV, branded Lincoln, based on the Rivian.

Ford confident in its ability to build electric vehicles

Rivian was previously able to build an electric car under Ford's luxury division. Just months after the news broke, and after a $500 million influx from Ford, the deal fell through due to pressure from COVID-19. At the time, this caused Ford and Rivian to develop their plans for another joint venture; now it looks like it won't.

“Now we are more and more convinced of our ability to win in the electric power industry,” Farley explained. “If we compare today to when we originally made this investment, a lot has changed in our capabilities, in the direction of brand development in both cases, and now we are more confident in what we need to do. We want to invest in Rivian - we like its future as a company, but now we are going to develop our own cars."

Farley said the key factor was the need to combine Ford's in-house software with Rivian's EV architecture. Farley cited the difference in business models between the two companies, but praised Rivian for "the best collaboration [Ford] has had with any other company."

Rivian confirms mutual development gap

"As Ford has expanded its own EV strategy and demand for Rivian vehicles has grown, we have 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 remains an investor and partner in our shared journey to an electrified future."

Rivian is reportedly considering building a second plant to meet consumer demand as well as fulfill obligations to its biggest backer, Amazon. Meanwhile, Ford has already exceeded the capacity of its three unfinished battery plants announced in September, Farley said. It's not yet clear how much battery capacity Ford will need, but apparently 129 gigawatt-hours of annual output is not enough.

“We already need more than planned,” Farley said during an interview. "I'm not going to give you a number, but it's clear that we'll have to move soon and there will be more."

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