Electric Vehicles Maker Rivian Raises USD 2.5bn In Funding Led By T. Rowe Price; Total To USD 5.4bn
Seeking Alpha Analyst Since 2020
- The funding enables Rivian to focus on execution of its products, with the launch of its R1T, R1S and Amazon delivery vehicles occurring in 2021.
The Deal and Investors:
Irvine, California-based electric vehicles maker, Rivian Automotive LLC (Rivian), announced today the raise of USD 2.5bn in its latest funding round, by funds and accounts advised by T. Rowe Price Associates Inc, bringing total funding raised by Rivian since inception to more than USD 5.4bn, according to AnalyzeMarkets estimates.
Other participating investors include new investors Soros Fund Management LLC, Coatue, Fidelity Management and Research Company, and Baron Capital Group, and existing investors Amazon and funds managed by BlackRock.
The funding enables Rivian to focus on execution of its products, with the launch of its R1T, R1S and Amazon delivery vehicles occurring in 2021. The company is dedicating its resources to “ensure our vehicles, supply chain and production systems are ready for a robust production ramp up.”
Last year in September, Rivian had received an order for 100,000 delivery vans from Amazon, with delivery expected to start in 2021. The vehicles will be produced at Rivian's manufacturing plant in Normal, Illinois.
The latest funding announcement is the first one for Rivian in 2020, which had raised circa USD 2.85bn across multiple rounds in 2019. Its previous funding rounds include a USD 700mn round led by Amazon in February, a USD 500mn investment from Ford Motor Company in April, a USD 350mn investment by Cox Automotive in September and a USD 1.3bn funding round closed in December.
AnalyzeMarkets previously reported: US Electric Automotive Startup Rivian Raises USD 1.3bn Funding; Bringing 2019 Funding to USD 2.9bn.
Rivian didn’t disclose its latest valuation. Its representatives didn’t immediately respond to AnalyzeMarkets’ request for comment.
Founded by RJ Scaringe in 2009, Rivian unveiled its electric vehicles last year, a five-passenger quad-motor AWD with over 400 miles of range R1T pickup, and an R1S, an all-electric SUV. these EV's are expected to be commercially available to US customers by the end of 2021.
Rivian had announced to acquire former Mitsubishi vehicle manufacturing plant in Normal, Illinois in January 2017, with plans to employ 1,000 employees and to invest USD 175mn in Normal.
Rivian investors also include the investment arm of Saudi conglomerate Abdul Latif Jameel and NY-based Sumitomo Corporation of Americas, a subsidiary of Fortune 500 company Sumitomo Corporation.
The global Electric Vehicle market size is expected to grow from USD 130bn in 2018 to USD 360bn by 2025 with an estimated CAGR of 16%, according to Valuates Reports. The Asia Pacific market, followed by Europe and North America, is anticipated to experience the highest development.
Electric Vehicle sales are expected to reach 44 million vehicles per year by 2030, according to The International Energy Agency.
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