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GM is adding two new zero-emission commercial vehicles to its lineup

General Motors said Wednesday it is adding two new zero-emissions vehicles to its commercial portfolio as it looks to expand its first-to-last-mile business arm, BrightDrop.

The first vehicle will be a battery electric cargo van under the Chevrolet brand that will likely be similar to the popular Chevy Express van. The second will be a medium-duty truck that CEO Mary Barra said “will put both the Ultium and Hydrotec hydrogen fuel cell technology to work.”

Much has been made of GM’s commitment to invest in electric passenger vehicles, but the company has also been busy targeting commercial customers with zero-emitting technologies. GM’s go-to technologies are battery electric and hydrogen fuel cells for heavy-duty and long-haul purposes.

GM in January said it would supply Hydrotec Hydrogen Fuel Cell Power Cubes to trucking manufacturer Navistar, with the first hydrogen trucks anticipated to go on sale in 2024. The automaker also penned a deal with Wabtec to develop hydrogen fuel cells and batteries for locomotives.

GM launched BrightDrop in January in a bid to offer commercial customers, starting with a contract with FedEx, an ecosystem of electric and connected products.

BrightDrop started with two main products, an electric van called the EV600 with an estimate range of 250 miles and a pod-like electric pallet dubbed EP1. BrightDrop executives previously hinted that the business unit was working on other products, including a medium-distance vehicle that transports multiple electric pallets known as EP1 and rapid load delivery vehicle concept.

“Between these new trucks, BrightDrop, EV pickups coming from Chevrolet and GMC, and our work with Wabtec on locomotives, and Navistar on semi trucks, we will have electric solutions for almost any towing or hauling job you can imagine,” Barra said.

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Automakers have battery anxiety, so they’re taking control of the supply

Battery joint ventures have become the hot must-have deal for automakers that have set ambitious targets to deliver millions of electric vehicles in the next few years.

It’s no longer just about securing a supply of cells. The string of partnerships and joint ventures show that automakers are taking a more active role in the development and even production of battery cells.

Automakers are taking a more active role in the development and even production of battery cells.

And the deals don’t appear to be slowing down. Just this week, Mercedes-Benz announced its $47 billion plan to become an electric-only automaker by 2030. Securing its battery supply chain by expanding existing partnerships or locking in new ones to jointly develop and produce battery cells and modules is a critical piece of its plan.

Mercedes, like other automakers, is also focused on developing and deploying advanced battery technology. In addition to setting up eight new battery plants to supply its future EVs, the German automaker said it was partnering with Sila Nano, the Silicon Valley battery chemistry startup that it has previously invested in, to increase energy density, which should in turn improve range and allow for shorter charging times.

“This follows a trend that we’ve seen of automakers realizing how critical the battery is and taking more control of the production of the cells in order to ensure their own supply,” Sila Nano CEO Gene Berdichevsky said in a recent interview. “Like if you’re VW, and you say, ‘We’re going to go 50% electric by whatever year,’ but then the batteries don’t show up, you’re bankrupt, you’re dead. Their scale is so big that even if their cell partners have promised them to deliver, automakers are scared that they won’t.”

Tesla, BMW and Volkswagen were early adopters of the battery joint-venture strategy. In 2014,Tesla and Panasonic signed an agreement to build a large battery manufacturing plant, or a gigafactory as everyone is now calling it, in the U.S. and have worked together since. BMW began working with Solid Power in 2017 to create solid-state batteries for high-performance EVs that could potentially lower costs by requiring less safety features than lithium-ion batteries.

In addition to its partnership with Northvolt, VW is also in talks with suppliers to secure more direct access to supplies like semiconductors and lithium so it can keep its existing plants running at full speed.

Now the rest of the industry is moving to work with battery companies, to share knowledge and resources and essentially become the manufacturer.

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Rivian raises another $2.5B, pushing its EV war chest up to $10.5B

Rivian announced Friday that it has closed a $2.5 billion private funding round led by Amazon’s Climate Pledge Fund, D1 Capital Partners, Ford Motor and funds and accounts advised by T. Rowe Price Associates Inc.

Third Point, Fidelity Management and Research Company, Dragoneer Investment Group and Coatue also participated in the round, according to Rivian.

“As we near the start of vehicle production, it’s vital that we keep looking forward and pushing through to Rivian’s next phase of growth,” Rivian CEO RJ Scaringe said in a statement. “This infusion of funds from trusted partners allows Rivian to scale new vehicle programs, expand our domestic facility footprint, and fuel international product rollout.”

D1 Capital Partners founder Dan Sundheim said the firm is excited to increase its “investment in Rivian as it reaches an inflection point in its commercialization and delivers what we believe will be exceptional products for customers.”

Rivian has raised roughly $10.5 billion to date. The company did not share a post-money valuation.

The electric automaker, which now employs 7,000 and is preparing to deliver its R1T pickup truck in September, last raised funds in January. That round brought in $2.65 billion from existing investors T. Rowe Price Associates Inc., Fidelity Management and Research Company, Amazon’s Climate Pledge Fund, Coatue and D1 Capital Partners. New investors also participated in that round, which pushed Rivian’s valuation to $27.6 billion, a source familiar with the investment round told TechCrunch at the time.

The news comes just a day after Rivian confirmed it plans to open a second U.S. factory. It also follows Rivian’s decision to delay deliveries of its R1T truck and R1S SUV from this summer to September due to delays in production caused by “cascading impacts of the pandemic,” particularly the ongoing global shortage of semiconductor chips.

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Outdoorsy co-founders detail how they expanded the sharing economy to RVs

Jen Young and Jeff Cavins were sitting in a beige conference room at a downtown Vancouver hotel, wasting away under fluorescent lights, an endless PowerPoint and a pair of sad Styrofoam cups of coffee between them. Young was there on a marketing contract. Cavins was a board member. They shared one of those looks that only couples can understand. It said: There’s got to be something better than this.

With 40 years of running technology companies under Cavins’ belt and a successful ad agency career under Young’s, the two decided to craft a business around their shared passion of being out in nature. When they realized there are more than 20 million recreational vehicles all across the U.S., most of which are used only a handful of days, they saw an opportunity. They asked themselves: How do we create memorable outdoor experiences and make them available to everybody?

For seven months, the couple traveled across the U.S. to do market research on travelers and RV owners to form the basis of their company.

The sharing economy of Uber, Lyft and Airbnb had already laid the groundwork. Why not open it up to RVs?

In 2014, Young and Cavins invested their life savings into Outdoorsy, sold their homes and jumped into an Airstream Eddie Bauer trailer. For seven months, the couple traveled across the U.S. to do market research on travelers and RV owners to form the basis of their company.

In June, Outdoorsy raised $90 million in a Series D led by ADAR1 Partners, as well as an additional $30 million in debt financing from Pacific Western Bank. The money will be used in large part to accelerate the growth of Outdoorsy’s insurtech business, Roamly. In the same month, the company announced a partnership with glamping company Collective Retreats to expand its outdoor offerings.

The following interview, part of an ongoing series with founders who are building transportation companies, has been edited for length and clarity. 

You’ve taken a personal approach to your business, spending months in the research phase actually living in an RV and interviewing RV owners and their families around the country. How do you think that’s shaped your business?

Jen Young: When we lived on the road, we had to experience that customer experience every day for hundreds of days. So this is where we were able to pick up and identify what the biggest pain points were on the renter and the owner side and start tackling those first.

For example, we understood what was most important from an insurance perspective because we could hear the voices of renters and owners — they consider these things their babies in many cases.

The owners that are more entrepreneurial-minded, they consider them more of a business asset, but both of them want to know, “What am I going to get for liability insurance? Comp and collision? Interior damage?” The detailed list of those things became the beginning of the product roadmap, as well as itemizing what things have to occur for a good guest experience.

In what ways have you had to pivot your model based on how people have used your platform? 

Cavins: One of the things we learned is most renters don’t want to drive these things, so owners started to do delivery, which became very popular on our platform. Sixty percent of all owners now will just deliver and set up for you so you can arrive at your campsite and everything’s just done. Your chairs are out, your barbecue is out, your awning is out and maybe a bottle of champagne in your fridge for you.

When Jen and I were traveling last year, we saw that most of the American landscape of campgrounds and campsites were overbooked. People couldn’t get their reservations closed the way that you would expect in a world of technologically evolved industries, and we thought there had to be something better in terms of the customer experience for camping, which really catalyzed our investment in glamping company Collective Retreats.

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Verizon demos THOR, its new vehicle for frontline rapid humanitarian response

The increasingly intense heats bearing down feverishly across the globe are accelerating the number, scale, and complexity of disasters worldwide. Just in the past few weeks, we have seen record heat in the United States Pacific Northwest that has led to hundreds of deaths — with more heat on the way.

Heat waves, wildfires, hurricanes, typhoons and many other types of weather-related disasters create huge challenges for infrastructure providers like energy utilities and telecoms, who have to keep uptime as close to 100% as possible for their customers even in the midst of some of the most challenging environments humans have ever witnessed.

To that end, Verizon (which, as a reminder, is the ultimate parent company for TechCrunch for now) announced today the first demo unit of what it dubs its THOR vehicle, for Tactical Humanitarian Operations Response. Designed on top of a Ford F650 pickup truck chassis, THOR is designed to provide highly mobile and resilient connectivity to frontline responders and citizens through wireless technologies like 5G Ultra Wideband and satellite uplinks.

Verizon’s THOR vehicle can deploy wireless technologies like 5G and satellite uplinks to rapidly deploy connectivity to frontline responders. Image Credits: Verizon

The company developed the prototype in partnership with the Department of Defense’s NavalX and the SoCal Tech Bridge, and unveiled the prototype last week at Marine Corps Air Station Miramar, just north of San Diego.

In addition to wireless connectivity, THOR can also potentially deploy a variety of drone capabilities. For instance, a vehicle could deploy a drone for search and rescue operations, or to help augment firefighters with intelligence on how a wildfire is developing over time.

As I discussed a few weeks ago, telcos like Verizon, AT&T and T-Mobile are increasing spending on a variety of resiliency initiatives, ranging from the rapid staging of mobile wireless equipment to novel solutions like AT&T’s FirstNet One, a dirigible capable of flying near a disaster zone to offer wireless services.

DisasterTech, as I have been dubbing it, has been gaining more attention of late from investors and companies both big and small as governments, the private sector, insurers, and individuals have to confront and respond to the intensifying nature of storms globally.

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Department of Justice opens investigation into EV startup Lordstown Motors

Lordstown Motors continues to stumble. The beleaguered electric vehicle startup is now being investigated by the Department of Justice, in addition to an ongoing investigation by the Securities and Exchange Commission.

The investigation, first broke by the Wall Street Journal on Friday, is still in its early stages, according to unnamed sources. It is being conducted by the U.S. attorney’s office in Manhattan.

“Lordstown Motors is committed to cooperating with any regulatory or governmental investigations and inquiries,” a company spokesperson told TechCrunch. “We look forward to closing this chapter so that our new leadership – and entire dedicated team – can focus solely on producing the first and best full-size all-electric pickup truck, the Lordstown Endurance.”

The probe is just the latest in a series of woes for the startup, which recently said it had to cut production volumes for its debut electric pickup, Endurance, by half — from around 2,200 vehicles to 1,000. Just a few weeks after it made that announcement, there followed news of a corporate shakeup: the resignation of founding CEO Steve Burns and CFO Julio Rodriguez. Burns started the company as an offshoot of his previous startup, Workhorse Group.

Lordstown had a strong start, with investments from General Motors that helped it purchase a 6.2-million-square-foot factory from the leading automaker in late 2019. Lordstown made positive headlines last August, when it announced it would go public via a merger with a special purpose acquisition company (SPAC). The deal injected the EV startup with around $675 million in gross proceeds and skyrocketed its market value to $1.6 billion. Less than a year later, Lordstown informed the SEC that it does not have sufficient capital to manufacture Endurance.

Then, in March, the short-seller firm Hindenburg Research released a report disputing the company’s claims that it had booked 100,000 pre-orders for the electric pickup. It wrote that “extensive research reveals that the company’s orders appear largely fictitious and used as a prop to raise capital and confer legitimacy.” The SEC opened its investigation in the wake of these accusations.

The WSJ story is unclear on the scope of the inquiry and the company declined to provide details. TechCrunch will update the story if it learns more.

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Autonomous trucking startup Embark to go public in $5.2B SPAC deal

Five-year old self-driving truck startup Embark Trucks Inc. said Wednesday it would merge with special purpose acquisition company Northern Genesis Acquisition Corp. II in a deal valued at $5.2 billion.

Embark takes a different approach to autonomous trucking: As opposed to manufacturing and operating a fleet of trucks themselves, which is the route rival TuSimple is taking, Embark offers its AV software as a service. Carriers and fleets can pay a per-mile subscription fee to access it. The company includes carriers Mesilla Valley Transportation and Bison Transport, and companies Anheuser-Busch InBev and HP Inc., among its partners.

Carriers purchase trucks with compatible hardware directly from OEMs, so Embark says it has designed its system to be “platform agnostic” across multiple components and manufacturers. The company says its software can simulate up to 1,200, 60-second scenarios per second, and make adaptive predictions using those scenarios for the behavior of other vehicles on the road.

Embark said in an investor presentation for the SPAC deal that it was targeting “driver-out,” or operating on roads without a safety driver, by 2023 and launching at a commercial scale across the American sunbelt the following year. However, Embark still has technical milestones yet to achieve, noting in the presentation that the software still needs to accomplish actions, such as interactions with emergency vehicles and responding to blown tires and other mechanical failures.

Upon closing, the transaction will inject Embark with around $615 million in gross cash proceeds, including $200 million in private investment in public equity (PIPE) funding from investors, including CPP Investments, Knight-Swift Transportation, Mubadala Capital, Sequoia Capital and Tiger Global Management.

Embark also said former Department of Transportation Secretary Elaine Chao was joining its board, likely a boon for a company operating in the autonomous trucking industry, which is still only authorized for commercial deployment in 24 states.

Embark was founded in 2016 by CEO Alex Rodrigues and CTO Brandon Moak, who worked together on autonomous driving while completing engineering degrees from Canada’s University of Waterloo. After launching out of Y Combinator, the company quickly went on to raise $117 million in total funding, including a $30 million Series B led by Sequoia Capital and a $70 million Series C led by Tiger Global Management.

The transaction is anticipated to close in the second half of 2021. The company joins competitor AV trucking developer Plus in going public via a SPAC merger. TuSimple opted for a traditional initial public offering in March.

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Self-driving trucks startup Kodiak Robotics snags investment, partnership from Bridgestone

Tire-making giant Bridgestone has taken a minority stake in Kodiak Robotics, the Silicon Valley-based startup developing autonomous trucks, as part of a broader partnership to test and develop smart tire technology.

While the terms of the deal weren’t disclosed, Kodiak Robotics co-founder and CEO Don Burnette told TechCrunch that this is a direct financial investment. Bridgestone CTO Nizar Trigui has also joined the Kodiak board as an observer.

The deal involves more than capital. The two companies have also formed a strategic partnership focused on advancing Bridgestone’s tire tech and fleet management system. Kodiak will use Bridgestone’s sensor-laden tires and fleet management system on its self-driving trucks, which are used to carry freight between Dallas and Houston as part of its testing program. The company recently said it is expanding its freight carrying pilots to San Antonio. Kodiak also tests its self-driving trucks — always with a safety operator behind the wheel — in and around Mountain View, California.

Semi-trucks travel 100,000 to 150,000 miles a year, Burnette said, adding that tire integrity and tire monitoring are integral to the safety of trucking, whether they’re driven by a human or computer.

“Safety of an autonomy system ultimately comes down to our ability to manipulate the tires that touch the road when you are accelerating or braking or steering,” Burnette said. “You need to be able to rely on your tires to actually perform the way they are expected to perform, otherwise your safety envelope is not necessarily guaranteed.”

Kodiak will use these smart tires to monitor pressure, temperature and even measure the loads on the wheels, which plays a role in vehicle dynamics and maneuverability. Kodiak will share the data it collects with Bridgestone, which the company can use to improve the chemistry of its tires.

Tire companies like Bridgestone already collect basic information from telematics providers that helps determine where trucks are driven, what types of roads they use as well as tire pressure and temperature. Predictive models are then developed based on that data. Autonomous vehicle companies bring an added value to tire companies, Burnette noted. Kodiak’s self-driving trucks are loaded with sensors of their own, which allows the company to collect massive amounts of driving data that can help Bridgestone understand exactly how its tires are being used.

“Autonomy providers like Kodiak have all of the raw data specifically on how the trucks are being driven,” he said. “We know what the forces are, we know what the steering is, we know what the braking pressures that were being commanded in real time. And so we can gather a wealth of data that has never been previously possible to collect for companies like Bridgestone.”

This allows Bridgestone to build predictive models that will more accurately be able to predict the eventual lifetime and also possibly give warnings to when tires may fail out of field. “And that’s ultimately what Kodiak is really interested in,” Burnette added.

The news follows Kodiak’s announcement in May that it was partnering with South Korean conglomerate SK to explore the possibility of deploying its autonomous vehicle technology in Asia. The ultimate aim of the SK partnership is to sell and distribute Kodiak’s self-driving technology in the region. Kodiak will examine how it can use SK’s products, components and technology for its autonomous system, including artificial intelligence microprocessors and advanced emergency braking systems. Both companies have also agreed to work together to provide fleet management services for customers in Asia.

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Jaguar Land Rover to develop a Defender-like hydrogen fuel cell EV

Jaguar Land Rover is developing a hydrogen fuel cell vehicle based on the new Defender SUV, and plans to begin testing the prototype next year.

The prototype program, known as Project Zeus, is part of JLR’s larger aim to only produce zero-tailpipe emissions vehicles by 2036. JLR has also made a commitment to have zero carbon emissions across its supply chain, products and operations by 2039.

Project Zeus is partially funded by the U.K. government-backed Advanced Propulsion Center. The automaker has also tapped AVL, Delta Motorsport, Marelli Automotive Systems and the U.K. Battery Industrialization Center to help develop the prototype. The testing program is designed to help engineers understand how a hydrogen powertrain can be developed that would meet the performance and capability (like towing and off-roading) standards that Land Rover customers expect.

Fuel cells combine hydrogen and oxygen to produce electricity without combustion. The electricity generated from hydrogen is used to power an electric motor. Some automakers, researchers and policymakers have advocated for the technology because hydrogen-powered FCEVs can be refueled quickly, have a high-energy density and don’t lose as much range in cold temperatures. The combination means EVs that can travel longer distances.

Few fuel cell EVs, otherwise known as FCEVs, are on the market today in part because of a lack of refueling stations. The Toyota Mirai is one example.

Data from the International Energy Agency and recent commitments by automakers suggests that might be changing. Last month, BMW Chairman Oliver Zipse said the automaker plans to produce a small number of hydrogen fuel-cell powered X5 SUVs next year.

The number of FCEVs in the world nearly doubled to 25,210 units in 2019 from the previous year, the latest data from the IEA shows. The United States has been the leader in sales, although there was a dip in 2019, followed by China, Japan and Korea.

Japan has been a leader on the infrastructure end as it aims to have 200,000 FCEVs on the road by 2025. The country had installed 113 stations as of 2019, nearly twice as many as the United States.

“We know hydrogen has a role to play in the future powertrain mix across the whole transport industry, and alongside battery electric vehicles, it offers another zero tailpipe emission solution for the specific capabilities and requirements of Jaguar Land Rover’s world class line-up of vehicles,” Ralph Clague, the head of hydrogen and fuel cells for Jaguar Land Rover said in a statement.

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Swedish company Northvolt raises $2.75B to accelerate European battery production

Swedish battery developer and manufacturer Northvolt AB has raised $2.75 billion in capital as it prepares to ramp up to an annual production capacity of 150 GWh in Europe by 2030.

The funding round — Northvolt’s largest thus far — was co-led by existing investors Goldman Sachs and Volkswagen, and new investors including the Swedish pension funds AP1-4 and OMERS, one of Canada’s largest pension plans. AMF, ATP, Baillie Gifford, Baron Capital Group, Bridford Investments Limited, Compagnia di San Paolo through Fondaco Growth, Cristina Stenbeck, Daniel Ek, IMAS Foundation, EIT InnoEnergy, Norrsken VC, PCS Holding, Scania and Stena Metall Finans also participated in the raise.

Volkswagen’s investment came to €500 million ($620 million), the OEM said Wednesday, maintaining its 20% stake in the battery manufacturer.

CNBC reported that Northvolt’s valuation now stands at $11.75 billion. The company declined to comment on the specific valuation figure to TechCrunch.

Northvolt has already scored major deals with automakers like Volkswagen and BMW. In July 2020, the company inked a $2.3 billion contract with BMW for batteries; more recently, in March, Volkswagen put in a $14 billion order over a 10-year period. The two deals bring Northvolt’s total contracts to $27 billion. Other notable customers include Swedish heavy-duty truck manufacturer Scania and energy storage company Fluence.

This brings Northvolt’s total raised to more than $6.5 billion since the company was founded in 2016. The manufacturer’s first gigafactory in Skellefteå, Sweden, will be expanded from 40 GWh to 60 GWh, in part due to increased demand from the Volkswagen order, the company said in a statement. That facility will commence production later in 2021.

Northvolt’s overarching plan is to ramp up to at least 150 GWh of annual battery production across Europe by 2030. To meet this massive target, the company is considering at least two additional gigafactories, including one in Germany.

Northvolt is one of Europe’s largest battery manufacturers. Company shareholder EIT InnoEnergy said in a statement Wednesday that the funding is key to Europe achieving its Green Deal objectives, which includes creating a European battery value chain.

The Swedish company aims to distinguish itself from other battery manufacturers by producing batteries using renewable energy for the manufacturing process. Northvolt says its batteries have an 80% lower carbon footprint than those made with coal power. It also recycles batteries in-house and reuses the raw materials in its production process.

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