Amazon-backed Rivian set to invest $5 billion in new assembly plant

Amazon-backed Rivian set to invest $5 billion in new assembly plant

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The target date to start production at the Rivian plant is the second quarter of 2023 with construction beginning in the fall of 2021, according to the revised proposal, Reuters reports. However, several people familiar with the matter told the news service that the COVID-19 pandemic will likely delay that timeline by up to six months.

Rivian declined to comment to Reuters.

The Irvine, California-based startup earlier this month pushed back plans to start output at its first factory — a former Mitsubishi Motors plant in Normal, Illinois — citing supply-chain bottlenecks for components such as semiconductors.

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Outside of its home market, Rivian has been scouting locations in Europe to build a new factory while also considering sites outside the European Union, Bloomberg News reported in February.

The company is a front-runner in a large pool of startups seeking to challenge Tesla Inc. in electric vehicles. Backed by high-profile investors including Amazon, Ford Motor Co. and T. Rowe Price Group, Rivian is looking to go public later this year, Bloomberg News has reported. The IPO could be valued as high as $70 billion, according to people familiar with the matter.

Rivian’s second U.S. plant will include battery cell production and multiple states have bid for the project, Reuters reported earlier this month, citing people familiar with the matter.

Meanwhile, Rivian announced July 23 that it raised $2.5 billion as it prepares to debut its plug-in pickup and sport-utility vehicle this fall. The latest round of funding brings the total amount of capital Rivian has raised to $10.5 billion, the company said in a statement

Bloomberg News contributed.

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