(Reuters) – Electrical car startup Rivian stated on Monday it closed a $1.three billion funding spherical, led by fund supervisor T. Rowe Value but in addition together with present traders on-line retailer Amazon.com Inc and No. 2 U.S. automaker Ford Motor Co.
The funding spherical, which additionally included BlackRock Inc, is the fourth this 12 months for Rivian and positions the Plymouth, Michigan-based firm as one of many better-financed gamers in a crowded EV manufacturing market the place Tesla Inc is essentially the most established participant.
“This funding demonstrates confidence in our staff, merchandise, expertise and technique,” Rivian Chief Government R.J. Scaringe stated in an announcement.
Electrical autos nonetheless make up solely a small piece of the worldwide automotive market. Whereas Tesla is the best-known maker, China and Europe are pushing automakers to roll out EVs, and Ford, Normal Motors Co and others have introduced plans to spend billions of {dollars} creating the autos.
Based in 2009, Rivian plans to construct an all-electric pickup truck, the R1T, and the companion R1S SUV, beginning in late 2020. Each fashions are based mostly on a Rivian-designed “skateboard,” a chassis that bundles electrical motor, batteries and controls and might accommodate quite a lot of physique types.
Previous to Monday’s announcement, Rivian had raised $2.2 billion from traders, in keeping with investor web site PitchBook, and was valued at an estimated $5 billion to $7 billion.
The corporate’s complete valuation within the wake of the newest funding spherical was not instantly clear.
Rivian stated on Monday no new board seats have been added because of the newest funding.
T. Rowe Value has positioned different bets within the auto sector. It’s a giant Tesla shareholder and likewise has invested in GM’s majority-owned Cruise self-driving division. T. Rowe Value additionally invested, together with Amazon, in self-driving automotive software program startup Aurora and British on-line meals supply firm Deliveroo.
“T. Rowe Value is happy to put money into Rivian because it strikes the innovation frontier ahead with its compelling sustainable transport options for each shoppers and companies,” T. Rowe Value Progress Inventory Fund Portfolio Supervisor Joe Fath stated Monday in an emailed assertion.
Amazon, which has relationships and offers throughout the auto trade, led a $700 million funding spherical in Rivian in February. The e-commerce firm additionally ordered 100,000 electrical supply autos from Rivian. The primary Amazon vans will likely be constructed at a former Mitsubishi Motors Corp plant in Regular, Illinois, beginning in 2021.
Amazon declined to touch upon Monday.
Ford invested $500 million in Rivian in April and plans to assist it start manufacturing in Regular in 2020.
“We wish to preserve a significant worth within the possession and way forward for that firm,” Ford spokesman T.R. Reid stated on Monday about Rivian.
In November, sources informed Reuters a battery-powered Lincoln SUV, due in mid-2022, could be the primary Ford car to be constructed on the Rivian skateboard.
Cox Automotive Inc, proprietor of the Autotrader on-line car market and Kelley Blue Guide automotive valuation service, invested $350 million in Rivian in September.
Reporting by Ben Klayman in Detroit; Enhancing by Dan Grebler and Matthew Lewis