Electric car start-up Rivian asserted on Friday that it has closed a $2.5 billion fundraising round led by investors Amazon.com Inc, Ford Motor Co, and T. Rowe Price.
The company mentioned that it has raised around $10.5 billion to date. It had 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 prior to that. The extra cash comes just after the Irvine, California-based automaker revealed a delay in the launch of its new models and as it looks to establish a second factory to boost production. Rivian is slated to announce the plant in the coming months and breaks ground early next year, Reuters reported, citing sources familiar with the situation.
“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.
Rivian asserted that financing was led by Amazon’s Climate Pledge Fund, D1 Capital Partners, Ford, and funds and accounts advised by T. Rowe Price. It also included participation by Third Point, Fidelity, Dragoneer Investment Group, and Coatue.
There is a plant of the company in Normal, Illinois already where it is planning on starting the manufacturing on an all electric-pickup and an 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. However, the delays for retail customers have not affected Rivian’s intentions to provide electric delivery vehicles to its partner and investor Amazon.
Amazon had agreed in September 2019 to purchase 100,000 electric vehicles from the start-up as part of its ambitious goal to make Amazon’s fleet run entirely on renewable energy. The company is anticipating that it gets to test electric delivery vans in 16 cities by the end of 2021.