Rivian raises $2.5bn of new funding with Amazon and Ford participating

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Electric vehicle maker Rivian closed a $2.5bn funding round on Friday (23 July), bringing its total raised since 2019 to $10.5bn.

The funding round was led by Amazon’s Climate Pledge Fund, D1 Capital Partners, funds advised by T. Rowe Price Associates Inc, and the Ford Motor Company, all of whom have previously invested in Rivian. Other participants included Fidelity Management and Research Co, Coatue, Dragoneer Investment Group, and Third Point.

This latest move follows a $2.5bn round in July 2020 and a $2.65bn round in January, which brought the company’s value to $27.6bn, according to TechCrunch. Rivian did not publish a total valuation after the new round. In May, Bloomberg reported that the company was beginning preparations for a potential IPO later this year.

The carmaker now employs approximately 7,000 people, and last week confirmed plans to open a second US factory where it will manufacture batteries. Its existing facility is located in Illinois, and the company is investigating potential locations in several states for the expansion.

Rivian has not yet begun production, having initially planned to release its R1T pickup truck and R1S SUV in 2020, but being forced by the pandemic to push that back to 2021. This was then further delayed to July, and most recently to September.

Both Ford and Amazon each own more than 10pc of the company, and Amazon has trialled using prototype Rivian vans for its deliveries in the US. This is just one of a number of new delivery methods the e-commerce giant has been exploring recently, having also begun working with autonomous vehicle start-up Plus and opened a centre in Helsinki to develop delivery robots.

RJ Scaringe, CEO of Rivian commented: “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, founder of D1 Capital Partners, added: “We are excited to increase our investment in Rivian as it reaches an inflection point in its commercialization and delivers what we believe will be exceptional products for customers.”

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