Automotive manufacturer Hyundai and its Kia subsidiary provided €100m ($112m) in funding for UK-based electric vehicle (EV) technology developer Arrival yesterday at a valuation pegged at $3.3bn by CNBC.
Arrival is working on artificial intelligence-equipped EVs ready to be adapted for autonomous driving. It provides smart software for use in EVs and uses microfactories to make components, materials and modular skateboard platforms for use in their production.
The company claims its technology can make plug-in EVs as cheap as fossil fuel-powered vehicles. It is initially concentrating on commercial vehicles which are in theory more amenable to the technology as they have fixed routes and overnight stops.
The investment was made through a strategic partnership agreement that will involve Hyundai and Kia adopting Arrival technology for its mobility services and the ongoing electrification of its vehicles. The corporate will also offer its knowledge of large-scale production and vehicles launches to Arrival.
Albert Biermann, head of Hyundai’s research and development division, said: “The eco-friendly vehicle market in Europe is expected to grow rapidly due to reinforcement of environmental regulations.
“Through the joint development of commercial electric vehicles with Arrival, we will be able to gain a competitive advantage and progressively establish our leadership in the global eco-friendly vehicle market.”
Arrival was founded in 2015 and employs some 800 people across the UK and five international offices but had not previously disclosed any financing details. JP Morgan was financial adviser and placement agent for the transaction.
Image courtesy of Arrival Ltd.
