Rivian raises $2.5 billion for second EV factory in U.S.

Rivian raises $2.5 billion for second EV factory in U.S.

Rivian, Michigan-based automotive technology firm and electric vehicle (EV) maker with seven locations across the country, has announced that it has garnered nearly $2.5 billion in a fresh investment round to set up a second EV factory in the U.S.

The latest investment round was led by e-commerce tech giant Amazon’s Climate Pledge Fund and automobile manufacturer Ford Motor Company. Without providing further details, Rivian spokeswoman Amy Mast confirmed that that the company was exploring locations for setting up a new manufacturing plant in the country.

Founded in 2009, Rivian owns and operates a manufacturing plant in Normal, Illinois. It also has other facilities in Plymouth area of Michigan, and Palo Alto and Carson of California, in addition to Woking area of United Kingdom. It is focused on building an electric sport utility vehicle and pickup truck, designed to be semi-autonomous vehicles for on-road as well as off-road driving.

While several EV startups are turning to deals with Special-purpose acquisition companies (SPACs) to raise money these days, Rivian has opted for investments from companies like Amazon and Ford as well as from institutional investors.

Announcing the latest private round of funding, the EV maker said, “Rivian has closed a $2.5 billion private funding round. The financing was led by Amazon’s Climate Pledge Fund, D1 Capital Partners, Ford Motor Company and funds and accounts advised by T. Rowe Price Associates, Inc.”

Some other companies like Third Point, Dragoneer Investment Group, Coatue and Fidelity Management & Research Co. also participated in the investment round.

RJ Scaringe, Chief Executive Officer (CEO) of Rivian, said the latest round of investment was crucial as the company approached very close to start EV production. Stressing that it was vital for the company to keep looking forward and pushing through to its next phase of growth, he added that the infusion of funds from trusted partners like Amazon and Ford would allow Rivian to scale new EV programs.

The Irvine, California-based EV maker’s current factory in Illinois has capacity, as per some media reports, for producing as many as 300,000 EVs per year. Currently, the startup is working on the eagerly-awaited R1T electric pickup truck and the R1S electric SUV that will share the same platform. It is also developing a delivery van for Amazon. However, it remains unclear whether the EV maker will use the second manufacturing plant to build the same EVs or new vehicles programs.