[Funding alert] Electric vehicle startup Rivian raises additional $2.5B from investment firm T Rowe Price
Electric vehicle startup Rivian on Friday said it raised an additional $2.5 billion in funding from accounts advised by investment firm T Rowe Price.
The startup has a contract with Amazon to build 100,000 electric delivery vans, starting next year at its factory — a former Mitsubishi plant in Normal, Illinois. Rivian is also rolling out a pickup truck and an SUV for sale to consumers next year.
Other investors who participated in this round included Soros Fund Management, Coatue, Fidelity Management and Research, and Baron Capital Group. Existing investors Amazon and hedge fund BlackRock also took part in this round, Rivian said.
However, the startup said that the new investment won't bring any more seats to its board.
In April 2019, US automaker Ford Motor invested $500 million into Rivian, and said the companies would work jointly to develop electric vehicles. That deal was in addition to a $700 million investment from Amazon that was announced in February 2019.
Most of Rivian's operations are in San Jose and Irvine, California, but it also has a large engineering and administrative office near Detroit. The startup employs about 2,300 people.
Commenting on the investment, RJ Scaringe, Founder and CEO, Rivian said, “We are focussed on the launch of our R1T, R1S, and Amazon delivery vehicles. With all three launches occurring in 2021, our teams are working hard to ensure our vehicles, supply chain, and production systems are ready for a robust production ramp up. We are grateful for the strong investor support that helps enable us to focus on execution of our products.”
Founded in 2009, the startup develops vehicles, products, and services related to sustainable transportation. Rivian has developed and vertically integrated a connected electric platform that can be flexibly applied to a range of applications, including the startup's adventure products, as well as B2B products, such as the Amazon last-mile delivery vans.
(Disclaimer: Additional background information has been added to this PTI copy for context)