The good times keep coming.
Despite recently announcing yet another delay for Rivian R1T and R1S deliveries, investors still have immense confidence in the all-electric vehicle start-up. Rivian has officially announced it has received another $2.5 billion in private funding for a grand total of $10.5 billion in fundraising since 2019. Financing was led by Amazon once again, specifically through its Climate Pledge Fund, along with D1 Capital Partners, and Ford.
Amazon and Ford each previously invested billions into Rivian and this latest round is continued proof of their long-term commitments to the company. Third Point, Fidelity Management and Research Company, Dragoneer Investment Group, and Coatue also participated in this latest round.
"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," said Rivian CEO RJ Scaringe. "This infusion of funds from trusted partners allows Rivian to scale new vehicle programs, expand our domestic facility footprint, and fuel international product rollout."
Only a day or so prior to the announcement, Reuters learned Rivian aims to build a second production facility in the US that will include battery cell production along with vehicles. Its existing factory is located in Normal, Illinois. A Rivian spokesperson confirmed it is "exploring locations for a second US manufacturing facility," but declined to give further details at this time.
The additional $2.5 billion at its disposal will probably be utilized to make that facility a reality. Building a new factory is estimated at around $1 billion and a battery cell production plant is estimated at around $2 billion.
It also seems that the plant, internally called "Project Tera," is further along in the planning phase than expected. Multiple states are reportedly bidding for the project, which could break ground as soon as early next year. A second production facility will also, quite obviously, lead to new jobs. Rivian currently has 7,000 employees. Rivian aims to expand sales beyond the US, such as to Europe and China, hence the need for a second factory.