Rivian believes thinking small has big potential, and is spinning off a company to prove it.

The electric vehicle manufacturer announced the creation of Also, Inc., a spinoff of Rivian’s micromobility business that will focus on small, lightweight vehicles designed to “meet the global mobility transportation challenges of today and tomorrow.”

Rivian retains a “substantial” minority ownership stake in Also, with Rivian founder and CEO RJ Scaringe serving as chairman of Also’s board of directors, and said it expects future collaboration, possibly including selective use of Rivian’s retail footprint.

Also also secured a $105 million investment from venture capital fund Eclipse Ventures to support its next phase of growth.

In a news release, Rivian said the new company grew out of what it called a “stealth program” focused on micromobility that began several years ago to address a “massive need” for small electric vehicles in “the sustainable transition of the global transportation system.”

The original goal of the program was to examine how Rivian’s software, electronics and electric propulsion could be applied to create a better, more affordable product. Eventually, Rivian decided it had the potential to “unlock a large opportunity” that deserved to be its own company, with different products, brand positioning and markets.

“For the world to fully transition to electrified transportation, a range of vehicle types and form factors will be needed,” Scaringe said. “I am extremely excited about the innovations developed by the Also team that will underpin a range of highly compelling micromobility products that will help define new categories.”

Rivian said it is making “significant progress” the launch of its R2 midsize SUV and expects to begin customer deliveries in the first half of 2026.