Electric vehicle start-up Rivian has closed a $2.5 billion U.S. fundraising round led by investors that include Amazon (NASDAQ:AMZN) and the Ford Motor Company (NYSE:F).
The latest funding came a day after the California-based company said it was exploring building a second U.S. assembly plant.
Rivian, which has one plant in Normal, Illinois, said it has raised about $10.5 billion U.S. to date. It will seek a valuation of more than $50 billion U.S. in an initial public offering (IPO) later this year, the company said.
Automakers are racing to develop electric vehicles as China, Europe and other countries mandate lower carbon emissions. Rivian plans to rollout its R1T pick-up truck and R1S SUV, as well as a delivery van for Amazon.
However, Rivian said last week that COVID-19 had delayed the launch of its vehicles. The first deliveries of the R1T, previously slated for July, were pushed to September this year, while the R1S was delayed to the autumn.
Rivian plans to follow its initial three vehicles with smaller model electric vehicles targeted at China and Europe where it may eventually build vehicles.
In addition to Amazon and Ford, the latest funding round included T. Rowe Price and D1 Capital Partners.