American electric vehicle startup Rivian has closed a $2.5 billion fundraising round led by investors Amazon, Ford Motor and T. Rowe Price.
The funding round comes as Rivian recently confirmed it’s looking for a location to build a second factory, one that will also produce batteries for its vehicles, in the US. The company is currently aiming to roll its first electric pickup trucks off the line this September.
“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 Chief Executive Mr. R.J. Scaringe said in a statement.
Rivian, which has a plant currently in Illinois, US, said it raised about $10.5 billion. It will seek a valuation of well over $50 billion in a potential public listing later this year, according to sources.
In addition to Amazon’s Climate Pledge Fund, Ford and funds managed by T. Rowe Price, the new funding round also was led by D1 Capital Partners. It also included participation by Third Point, Fidelity Management and Research Co, Dragoneer Investment Group and Coatue, Rivian said.
Amazon and Ford each own more than 10 percent of the startup and are working with Rivian on separate vehicles, Rivian is building delivery vans for Amazon and is developing a vehicle with Ford.
Automakers are racing to develop electric vehicles as China, Europe and other countries and regions mandate lower carbon emissions. Rivian aims to compete with the launch of its R1T pickup and R1S SUV.
Last week, Mr. Scaringe said in a letter to customers that COVID-19 had delayed the launch of its vehicles. The first deliveries of the R1T, previously slated for July, were pushed to September, while the R1S was delayed to autumn.