Rivian's R1T pickup. Photo: Michael Brochstein/SOPA Images/LightRocket via Getty Images

Electric vehicle company Rivian announced Friday the close of a $2.5 billion funding round.

Why it matters: It's another sign that the Michigan-based company is very well-positioned among the suite of electric vehicle startups with vehicles heading to the market.

  • The company is planning to soon launch production of an electric SUV and pickup, and also has a deal with Amazon to make a large fleet of electric delivery vehicles.

Driving the news: The funding was led by "funds and accounts advised by T. Rowe Price Associates, Inc," Rivian said.

  • Backers include Soros Fund Management LLC, Coatue, Fidelity Management and Research Company, and Baron Capital Group, Rivian said.
  • Existing shareholders Amazon and BlackRock-managed funds also took part.

What’s next: Rivian plans to launch production of its R1T pickup, R1S SUV and the vehicles for Amazon next year at its manufacturing plant in Normal, Illinois.

  • Amazon plans to buy 100,000 delivery vehicles from Rivian and hopes to have 10,000 operating as soon as 2022.

The bottom line, via Axios transportation reporter Joann Muller: Rivian is biting off an extraordinary series of manufacturing challenges all at once for a startup that has never built a vehicle. Even experienced automakers struggle to launch new vehicles smoothly.

Go deeper

Ben Geman, author of Generate
Sep 18, 2020 - Economy & Business

Why Amazon committed $2 billion to fund clean energy technology

Illustration: Sarah Grillo/Axios

Matt Peterson, a senior Amazon exec, joined the "Axios Re:Cap" podcast to explain the thinking behind the tech and commerce giant's climate venture capital fund, which rolled out its first investments on Thursday.

Why it matters: The fund, $2 billion to start, is beginning to invest on the heels of Amazon's late 2019 pledge to be net-zero emissions by 2040.

Amazon defends working with oil companies to reach its zero-carbon goal

Kara Hurst in Seattle.

Partnering with oil and gas producers is necessary for Amazon and other companies to achieve their climate goals, the tech giant's chief of sustainability, Kara Hurst, said during an Axios virtual event on Thursday.

The big picture: Amazon aims to hit carbon neutrality in 2040, 10 years earlier than the Paris climate accord. The company plans to reach its goal in part by helping companies develop climate-friendly technologies through a $2 billion venture fund. The first recipients were announced on Thursday.

Updated 1 hour ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 12:30 a.m. ET: 31,517,087 — Total deaths: 968,726 Total recoveries: 21,622,862Map.
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  3. Health: The U.S. reaches 200,000 coronavirus deaths — The CDC's crumbling reputation — America turns against coronavirus vaccine.
  4. Politics: Elected officials are failing us on much-needed stimulus.
  5. Business: Two-thirds of business leaders think pandemic will lead to permanent changes — Fed chair warns economy will feel the weight of expired stimulus.
  6. Sports: NFL fines maskless coaches.

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