Hyundai and Kia have invested approximately $110 million into British-based electric car startup Arrival. The new partnership announced through a press release will position the Korean automakers in the emissions-free commercial vehicle category that e-commerce giant Amazon looks to secure through its partnership with Rivian.
The $110 million investment was split into two different amounts, $22 million from Kia Motors and the remaining $88 million from Hyundai. Both companies are working toward a future that includes a strong lineup of electric vehicles in its bid to increase its presence in the sustainable transportation sector.
With Arrival’s main headquarter in London, and offices in Germany, the Netherlands, Russia, and the United States, the electric car startup looks to expand its global reach through the new partnership.
The three companies came to an agreement that will allow both Kia and Hyundai to use Arrival’s “skateboard chassis” and electric car technologies to produce battery-electric commercial vehicles. The opportunity will also position the automakers to reduce their carbon footprint from the use of diesel-powered commercial vehicles.
Arrival’s Chief Strategy Officer Avinash Rugoobur stated, “We are excited to come out of stealth mode with our partnership with Hyundai Motor Group, and our complementary expertise will allow us to rapidly design, build and roll out vehicles together. Accelerating electric vehicle adoption is good for everyone – for people, business and the planet and we are pleased to undertake this mission with our partners Hyundai and Kia.”
This new partnership between the three companies can be seen as Rivian’s first competition in the commercial vehicle market. Amazon CEO Jeff Bezos announced the partnership with Rivian last year and the company’s plans to buy 100,000 electric vans from the Plymouth, Michigan-based electric truck maker.
Competition for Rivian in the commercial vehicle sector will accelerate the transition to sustainable forms of transportation in the delivery vehicle industry. Transitioning delivery vehicles to electric power will remove a significant amount of carbon from the Earth’s atmosphere by minimizing the climate impact from the millions of packages being delivered via diesel-powered vehicles every day.
Rivian has unveiled its consumer-oriented R1T pickup truck and R1S SUV to the public at its numerous reservation holder events. Pictures of the Rivian-powered electric van were released by Amazon the same day Bezos announced the partnership.