Rivian raises $2.5 billion in new funding round led by Amazon, Ford

US News

RJ Scaringe, founder and chief executive officer of Rivian Automotive Inc., unveils the R1T electric pickup truck, left, and R1S electric sports utility vehicle (SUV) during a reveal event at AutoMobility LA ahead of the Los Angeles Auto Show in Los Angeles, California.
Bloomberg | Bloomberg | Getty Images

Electric vehicle start-up Rivian on Friday said it closed a $2.5 billion funding round led by existing investors Amazon, Ford Motor and T. Rowe Price.

The company said it has raised about $10.5 billion to date. Rivian closed a $2.65 billion investment round in January and another $2.5 billion round last July. It raised $1.3 billion in December 2019 and at least $1.5 billion before that.

“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,” Rivian CEO RJ Scaringe said in a statement, adding that the fresh funding will go toward expanding new vehicle programs, the company’s domestic facility footprint and international product rollout.

The funding announcement comes after Rivian on Thursday said it plans to open a second manufacturing plant in the U.S. Multiple U.S. states have submitted bids for the plant, referred to internally as “Project Tera.” Rivian is slated to announce the facility in the coming months and break ground early next year, Reuters reported, citing sources familiar with the situation.

Rivian already operates a plant in Normal, Illinois, where it plans to start production on an all-electric pickup and SUV.

Last week, the company notified buyers it is delaying deliveries of the R1T pickup until September and the R1S SUV until later in the fall. Scaringe blamed a number of pandemic-related issues, “from facility construction, to equipment installation, to vehicle component supply (especially semiconductors),” according to a letter sent to customers.

The delays for retail customers have not impacted Rivian’s plans to provide electric delivery vehicles to its partner and investor Amazon, the company said.

Amazon agreed in September 2019 to purchase 100,000 electric vehicles from the start-up as part of its ambitious push to make Amazon’s fleet run entirely on renewable energy. The company hopes to test electric delivery vans in 16 cities by the end of 2021.

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