Electric vehicle startup Rivian stated on Monday it closed a $1.3 billion investment round, led by fund manager T. Rowe Price but also involved other existing investors such as online retailer Amazon.com Inc and Ford Motor.
The investment round, which also involved BlackRock Inc, is the fourth this year for Rivian and positions the Plymouth, Michigan-based firm as among the better-financed players in a crowded EV manufacturing market where Tesla Inc is the most popular automaker.
“This investment demonstrates confidence in our team, products, technology, and strategy,” Rivian Chief Executive R.J. Scaringe stated.
Electric vehicles still make up only a small amount of the worldwide automotive market. While Tesla is the most popular maker, China and Europe are pushing automakers to introduce more EVs, and Ford, General Motors and others have discussed plans to invest billions of dollars to develop the electric vehicles.
Founded in 2009, Rivian prepares to create an all-electric pickup truck, the R1T, and the companion R1S SUV, beginning in 2020. Both models are based on a Rivian-designed “skateboard,” a chassis that packages electric motor, batteries, and controls and can accommodate a range of body styles.
Before Monday’s announcement, Rivian had raised $2.2 billion from investors, and was valued between $5 billion to $7 billion.
The company’s total valuation following the latest investment round was not clear yet.
Rivian stated on Monday no new board seats were included as a result of the recent investment.
T. Rowe Price has different hopes in the auto sector. It is a large Tesla shareholder and also has spent in GM’s majority-owned Cruise self-driving division. T. Rowe Price also invested, together with Amazon, in self-driving car software startup Aurora and British online food delivery company Deliveroo.
“T. Rowe Price is excited to invest in Rivian as it moves the innovation frontier forward with its compelling sustainable transport solutions for both consumers and businesses,” stated T. Rowe Price Growth Stock Fund Portfolio Manager Joe Fath, in an emailed statement according to Reuters.
Amazon, which has relationships and deals across the auto industry, led a $700 million investment round in Rivian in February. The e-commerce company has also ordered 100,000 electric delivery vehicles from Rivian. The first Amazon vans will be constructed at a former Mitsubishi Motors Corp plant located in Normal, Illinois, starting in 2021.
Amazon refused to comment on Monday.
Ford invested $500 million in Rivian in April and plans to help it start production in Normal, Illinois, in 2020.
