Electric vehicle (EV) startup Rivian confirmed on Monday (Dec. 23) that it closed a successful funding round at $1.3 billion. The lead investor was T. Rowe Price, but included existing investors Amazon and Ford, according to Reuters.
This latest funding round, which also included BlackRock, is Rivian’s fourth this year, positioning the company as one of the strongest competitors in the electric vehicle manufacturing market, in which Tesla is the legacy player.
“This investment demonstrates confidence in our team, products, technology and strategy,” said Rivian CEO R.J. Scaringe in a statement.
Cars For The 21st Century
EVs currently comprise a small portion of the global auto market. Though Tesla is the household name, China and Europe have incentivized other automakers to produce electric vehicles. Ford, General Motors and others intend to develop similar products.
Rivian previously raised $2.2 billion, according to PitchBook, “and was valued at an estimated $5 billion to $7 billion,” Reuters reported.
“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,” said T. Rowe Price Growth Stock Fund Portfolio Manager Joe Fath in an emailed statement.
In February, Amazon led a $700 million funding round for Rivian, and ordered 100,000 delivery EVs from the firm. “The first Amazon vans will be built at a former [Mitsubishi Motors] plant in Normal, Illinois, starting in 2021,” the report said.
Amazon chose not to comment regarding the announcement.
In April, Ford invested $500 million in Rivian, planning to help kick-start production in 2020.
“We want to maintain a meaningful value in the ownership and future of that company,” said Ford Spokesman T.R. Reid.