To help reduce its climate impact, Amazon is taking some of its first steps in replacing its delivery trucks with electric alternatives.
The tech giant announced Thursday that it is ordering 100,000 electric delivery trucks from Michigan-based Rivian, which will manufacture its vehicles at a factory in downstate Normal.
The Amazon order is the largest Rivian has received to date, and the company says it expects to begin deploying its trucks to Amazon in 2021.
Amazon said the commitment is part of the company’s goal to use fully renewable energy by 2030 and become carbon neutral by 2040. Amazon’s “Climate Pledge,” which was revealed Thursday in partnership with Global Optimism, also includes using solar energy and carbon offset technology. The initiative invites other corporations to participate as well.
“Large companies signing The Climate Pledge will send an important signal to the market that it’s time to invest in the products and services the signatories will need to meet their commitments,” said Amazon founder and CEO Jeff Bezos in a statement.
Amazon also said it invested $100 million in reforestation projects around the world.
In February, Rivian raised $700 million in a funding round led by Amazon and $500 million in April from Ford. And just earlier this month, Rivian raised an additional $350 million from Cox Automotive. Founded in 2009, Rivian has raised more than $1.8 billion to date.
Besides delivery trucks, the electric vehicle company is also developing electric pickup trucks and SUVs, which are slated to launch next year. The startup is currently accepting pre-orders for both vehicles.
Rivian will receive more than $49 million in Illinois state tax credits over 15 years if it hits certain hiring targets in its 2.6-million-square-foot plant in Normal. The company expects to create 1,000 jobs in Normal by 2024. There are about 130 employees working at the plant now, according to The Chicago Tribune.
