Korea’s Hyundai Group is backing a UK electric vehicle startup that plans to begin selling battery-powered delivery vans in 2021, the companies said on Thursday.
Hyundai Motor Co and sister firm Kia Motors Corp are making an investment of 100 million euros ($110 million) in Arrival Ltd.
Founded in 2015 and based in London, Arrival has developed a boxy, futuristic-looking shuttle bus aimed at the commercial delivery market. The company said its van will have a range between charges of 300 miles.
Rivian is backed by Ford Motor Co and Amazon and has a contract to build 100,000 electric delivery vans for the e-commerce giant, starting in 2021.
Hyundai and Kia last year invested $89 million in Rimac Automobili, a nine-year-old Croatian company aspiring to build electric supercars that are also backed by Porsche AG.
Arrival said its vehicles will be equipped with advanced driver-assist features and can be upgraded with self-driving systems.
Last fall, Arrival, which until now has operated largely in stealth mode, hired General Motors veteran Michael Ableson to head its new North American operations.
With a small factory in Banbury, England, Arrival said it now has 800 employees in five countries, including Germany, Russia, and Israel.
Arrival previously said it would use BlackBerry’s QNX operating system to connect safety features in its electric vehicles.