(Information) – Electrical car startup Rivian mentioned on Monday it closed a $1.three billion funding spherical, led by fund supervisor T. Rowe Worth but in addition together with present traders on-line retailer Amazon.com Inc and No. 2 U.S. automaker Ford Motor Co.
FILE PHOTO: R.J. Scaringe, Rivian’s 35-year-old CEO, introduces his firm’s R1T all-electric pickup truck at Los Angeles Auto Present in Los Angeles, California, U.S. November 27, 2018. Information/Mike Blake/File Photograph
The funding spherical, which additionally included BlackRock Inc, is the fourth this yr for Rivian and positions the Plymouth, Michigan-based firm as one of many better-financed gamers in a crowded EV manufacturing market the place Tesla Inc is probably the most established participant.
“This funding demonstrates confidence in our workforce, merchandise, expertise and technique,” Rivian Chief Government R.J. Scaringe mentioned in an announcement.
Electrical autos nonetheless make up solely a small piece of the worldwide automotive market. Whereas Tesla is the best-known maker, China and Europe are pushing automakers to roll out EVs, and Ford, Basic Motors Co and others have introduced plans to spend billions of dollars creating the autos.
Based in 2009, Rivian plans to construct an all-electric pickup truck, the R1T, and the companion R1S SUV, beginning in late 2020. Each fashions are based mostly on a Rivian-designed “skateboard,” a chassis that bundles electrical motor, batteries and controls and might accommodate quite a lot of physique kinds.
Previous to Monday’s announcement, Rivian had raised $2.2 billion from traders, in keeping with investor web site PitchBook, and was valued at an estimated $5 billion to $7 billion.
Rivian mentioned on Monday no new board seats have been added on account of the most recent funding.
T. Rowe Worth has positioned different bets within the auto sector. It’s a giant Tesla shareholder and in addition has invested in GM’s majority-owned Cruise self-driving division. T. Rowe Worth additionally invested, together with Amazon, in self-driving automotive software program startup Aurora and British on-line meals supply firm Deliveroo.
Amazon, which has relationships and offers throughout the auto trade, led a $700 million funding spherical in Rivian in February. The e-commerce large additionally ordered 100,000 electrical supply autos from Rivian. The primary Amazon vans will likely be constructed at a former Mitsubishi plant in Regular, Illinois, beginning in 2021.
Ford invested $500 million in Rivian in April and plans to assist it start manufacturing in Regular in 2020.
“We need to keep a significant worth within the possession and way forward for that firm,” Ford spokesman T.R. Reid mentioned of Rivian.
In November, sources advised Information a battery-powered Lincoln SUV, due in mid-2022, could be the primary Ford car to be constructed on the Rivian skateboard.
Cox Automotive Inc, proprietor of the Autotrader on-line car market and Kelley Blue Guide automotive valuation service, invested $350 million in Rivian in September.
Reporting by Ben Klayman in Detroit; Modifying by Sonya Hepinstall and Dan Grebler