Rivian and Ford scrap plans to develop an electric vehicle together, citing a mutual desire to focus on their own projects

• Ford and Rivian no longer plan to develop an electric vehicle together, Automotive News reported.
• Ford CEO Jim Farley suggested his company had the confidence to build EVs without Rivian's help.

Ford and Rivian have scrapped plans to develop an electric vehicle together, the companies confirmed Friday.

The vehicle makers mutually decided to each focus on their own projects, meaning that the new model envisioned under a deal struck in early 2019 will not go ahead, Automotive News first reported.

Ford CEO Jim Farley pointed to his company's "growing confidence" to "win in the electric space" without the help of Rivian, the outlet reported.

"We want to invest in Rivian — we love their future as a company — but at this point we're going to develop our own vehicles," Farley said.

Ford said in an emailed statement to CNBC: "We respect Rivian and have had extensive exploratory discussions with them, however, both sides have agreed not to pursue any kind of joint vehicle development or platform sharing."

Electric-truck maker Rivian also emailed a statement to CNBC. "As Ford has scaled its own EV strategy and demand for Rivian vehicles has grown, we've mutually decided to focus on our own projects and deliveries," it said.

Ford and Rivian did not immediately respond to Insider's request for comment.

Ford originally announced its intentions to produce a Rivian-powered electric vehicle in 2019, when it made its first investment of $500 million in the startup.

In 2020, Ford dropped plans for a different model for the automaker's Lincoln luxury brand, which would have been developed using Rivian's technology, The Wall Street Journal reported.

The turnaround comes after Rivian went public this month, with a blockbuster IPO that raised $11.9 billion — one of the biggest market debuts in history.

The electric-car maker reached a market value near $100 billion on a fully diluted basis as its shares soared, making it more valuable than Ford and General Motors, as Insider previously reported.