AT&T initiates pilot deal to acquire Rivian electric vehicles, aiming to reduce costs and emissions

In a strategic move towards sustainability and efficiency, U.S. wireless carrier AT&T has announced its collaboration with electric vehicle (EV) startup Rivian. The partnership aims to explore ways to reduce costs, minimize carbon emissions, and enhance safety through the integration of electric vehicles into AT&T’s fleet. The companies revealed this initiative on Thursday, 14 December 2023.

This venture marks a significant milestone for Rivian, following the recent termination of its exclusivity agreement with Amazon for delivery vans. The end of the pact has paved the way for Rivian to engage with a broader range of customers, making the AT&T deal its inaugural post-exclusivity partnership.

AT&T plans to introduce Rivian’s electric commercial vans, R1T pickup trucks, and R1S sport utility vehicles into its fleet starting in early 2024, according to a joint statement. However, specific details, such as the number of vehicles AT&T will procure and the financial terms of the deal, remain undisclosed.

Known for its commitment to sustainability, AT&T has been actively investing in transitioning its commercial fleet to vehicles using alternative fuels like compressed natural gas and hybrid electric options. The partnership with Rivian is positioned as a crucial step in AT&T’s ongoing efforts to reduce its carbon footprint and embrace a cleaner future for its operations, as highlighted by Hardmon Williams, Senior Vice President of AT&T Connected Solutions.

The push towards environmentally friendly practices aligns with global trends in environmental, social, and corporate governance (ESG), where companies are setting emission reduction targets and aiming to establish zero-emission fleets. The adoption of electric vehicles, however, faces challenges such as high-interest rates, making EVs more expensive compared to traditional gas-powered vehicles. This financial hurdle has raised concerns about a potential slowdown in demand.

Rivian, nevertheless, remains optimistic about the growing interest in its electric vans, extending beyond its previous exclusivity arrangement with Amazon. The company did not disclose additional customers on Thursday, 14 December 2023, but reiterated its commitment to fulfilling a substantial order for 100,000 vans for Amazon by 2030. As of October 2023, Amazon reported having 10,000 Rivian vehicles deployed across the U.S. and Europe.

In a related development, Rivian, headquartered in Irvine, California, revised its 2023 production forecast, anticipating a total of 54,000 units. This adjustment underscores Rivian’s proactive approach to meeting the evolving demands of the electric vehicle market.

As the partnership between AT&T and Rivian unfolds, it symbolizes a joint commitment to substantial innovation, setting the stage for a cleaner and more efficient future in the realm of wireless communication and electric mobility.