EV startup Rivian announces $ 2.5 billion funding round led by Amazon and Ford
By Ben Klayman
DETROIT (Reuters) – Electric car startup Rivian said Friday it closed a $ 2.5 billion financing round led by investors Amazon.com Inc., Ford Motor Co and T. Rowe Price.
The announcement came a day after the California-based company announced it was considering building a second U.S. assembly plant. Reuters reported Thursday, citing unnamed sources, that Rivian’s proposed facility, dubbed “Project Tera,” will include battery cell production.
“As we near the start of vehicle production, it is important that we continue to look ahead and drive Rivian’s next phase of growth,” said RJ Scaringe, chief executive of Rivian.
“This cash injection … enables Rivian to scale new vehicle programs, expand our domestic presence and drive international product launches,” he added.
Rivian, which currently operates a facility in Normal, Illinois, has raised approximately $ 10.5 billion to date by its own account. It will target a valuation of well over $ 50 billion on a potential public listing later this year, a source previously told Reuters.
Automakers are racing to develop electric vehicles as China, Europe and other countries and regions mandate lower CO2 emissions. Rivian plans to compete when it launches its R1T pickup and R1S SUV, as well as a delivery van for Amazon.
Scaringe said in a letter to customers last week that COVID-19 had delayed the launch of its vehicles. The first deliveries of the R1T, previously scheduled for July, have been postponed to September, while the R1S has been delayed until autumn.
Scaringe told Reuters last November that Rivian planned to follow the first three vehicles with smaller models, targeting China and Europe, where it could eventually build vehicles.
In addition to Amazon’s Climate Pledge Fund, Ford and funds managed by T. Rowe Price, the financing round was also led by D1 Capital Partners on Friday. It also included participation from Third Point, Fidelity Management and Research Co, Dragoneer Investment Group, and Coatue, Rivian said.
(Reporting by Ben Klayman; Editing by Diane Craft and Marguerita Choy)