Plymouth’s startup Rivian gets another $2.5B funding round led by Amazon, Ford & D1 Capital

Rivian raises $2.5 billion

 

Rivian revealed on Friday that it has raised $2.5 billion in private investment from Amazon’s Climate Pledge Fund, D1 Capital Partners, Ford Motor, and T. Rowe Price Associates Inc. funds and accounts. According to Rivian, the round included Third Point, Fidelity Management and Research Company, Dragoneer Investment Group, and Coatue.

The electric vehicle manufacturer, which currently employs 7,000 people and plans to launch its R1T pickup truck in September, has last raised money in January. Existing investors T. Rowe Price Associates Inc., Fidelity Management and Research Company, Amazon’s Climate Pledge Fund, Coatue, and D1 Capital Partners contributed $2.65 billion to the round. Rivian’s valuation was raised to $27.6 billion as a result of the round, which also included new investors.

Rivian said on Thursday that it wants to build a second manufacturing unit in the United States. Several states in the United States have made proposals for the facility, dubbed ‘Project Tera’ internally. Rivian plans to announce the facility in the coming months and begin construction early next year, according to Reuters, which cited individuals familiar with the matter.

Rivian’s aims and funding history

Rivian CEO RJ Scaringe made a public announcement:

‘As we near the start of vehicle production, it’s vital that we keep looking forward and pushing through to Rivian’s next phase of growth. This infusion of funds from trusted partners allows Rivian to scale new vehicle programs, expand our domestic facility footprint, and fuel international product rollout.’

Dan Sundheim, the founder of D1 Capital Partners, said the company is delighted to expand its investment in Rivian as it hits an inflection point in its commercialization and provides what they believe will be great products for consumers. Despite the fact that a post-money valuation was not provided by the firm, we are well aware that Rivian has managed to raise around $10.5 billion so far.

Rivian announced its ambitions to establish a second facility in the United States barely a day ago. It also comes on the heels of Rivian’s decision to push back the delivery of its R1T truck and R1S SUV from this summer to September owing to production delays caused by cascading effects of the epidemic, notably the current worldwide semiconductor chip scarcity. Rivian’s ambitions to supply electric delivery trucks to its partner and investor Amazon have not been hampered by the delays for retail consumers, according to the firm.

Amazon committed to buying 100,000 electric vehicles from the start-up in September 2019 as part of its ambitious plan to run Amazon’s fleet solely on renewable energy. By the end of 2021, the firm wants to test electric delivery vehicles in 16 cities. Rivian already has a manufacturing facility in Normal, Illinois, where it plans to begin production on an all-electric truck and SUV.

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