Amazon leads billion-dollar investment in new electric ute and SUV maker

Electric ute and SUV start-up Rivian has been given a strong tailwind in the lead-up to its 2020 public launch, following a $A1 billion investment round led by e-commerce giant Amazon.

In a statement over the weekend, the chief executive of Amazon’s worldwide consumer division, Jeff Wilke, confirmed the news and said the company was “inspired by Rivian’s vision for the future of electric transportation”.

The announcement did not detail how much Amazon specifically will invest in Rivian, and the round included investments from Rivian’s existing shareholders.

One notable absentee from the announcement was General Motors, which had been rumoured to invest. That doesn’t mean the Detroit automaker won’t subsequently take a stake in Rivian.

For now, Rivian will remain an independent company despite the investment round, as its overall value approaches $A1.5 billion without having sold a single production model.

"This investment is an important milestone for Rivian and the shift to sustainable mobility,” said RJ Scaringe, founder and chief executive of Rivian.

“Beyond simply eliminating compromises that exist around performance, capability and efficiency, we are working to drive innovation across the entire customer experience.

"Delivering on this vision requires the right partners, and we are excited to have Amazon with us on our journey to create products, technology and experiences that reset expectations of what is possible.”

The latest investment round bodes well for Rivian’s confirmed expansion into right-hand drive markets including Australia.

The bourgeoning Michigan-based firm first revealed its wares at the Los Angeles motor show in November, when it debuted two all-new battery-powered production models that had been nine years in the making.

The headline machine is the R1T pick-up, an all-electric dual-cab utility to rival the likes of the Ford F-Series, Chevrolet Silverado and RAM Trucks, and it will be sold alongside the closely related R1S seven-seat SUV touted as a direct Range Rover rival.

Rivian’s chief communications officer, Ken Schuman, revealed that both are intended for release in Australia, Japan and the UK (all right-hand drive markets).

“The goal is to continue to expand; I don’t have any dates for today but we do plan to be in your market in due time,” Schuman told carsales.com.au.

The Rivian R1T/R1S pairing will reach showrooms in the US, Canada and Mexico in late 2020, followed by Europe and China in 2021. Australia will follow shortly thereafter.

Rivian stakeholders say the factory will have a capacity of 250,000 vehicles annually, though the initial plan is for “tens of thousands of vehicles for the first few years”.

“We’re focussed on a brand-new segment called the electric adventure vehicles,” said Schuman.

“We want to disprove a bunch of myths: that electric vehicles can’t go off-road, that electric vehicles can’t deliver performance, that electric vehicles aren’t made to get dirty. That’s what these vehicles are born around, that’s their ethos.

“It’s really been built with this adventure segment in mind and opening what we feel is a whole new segment.”

One of the keys to the RT1 ute’s appeal is a massive tunnel positioned between the cabin and tray — ideal for snowboard and surfboard storage — along with a dearth of regular floor mats through the cabin, because “they’re not made to get dirty and they’re hard to clean”.

At its top battery level, the R1T boasts a range of about 645km. It will also be possible to charge 320km of range in 30 minutes using a DC fast-charger.

Towing is also well facilitated courtesy of a five-tonne rating, while off-roading capability is assured thanks to the RT1’s four-wheel drive system, which comprises an individual electric motor on each wheel.

What remains to be seen is the local price of either model. In the US, R1T pricing starts at $US61,500 ($A84,950) and R1S pricing starts at $US65,000 ($A89,750) – after the $US7500 US EV federal tax credit.

That points to a likely starting price of more than $100,000 for both models Down Under.

“We’ve been waiting to bring these cars out once we have the battery plant, once we have the design, [and] the battery tech tested and working,” said Schuman.

“We’ve tried to let the world know we’re real and we’re coming for you.”