Rivian Automotive Inc., an electric vehicle startup tapped by Amazon.com Inc. to supply 100,000 vans for its delivery fleet, today announced that it has raised $1.3 billion in funding from the online retail giant and other institutional backers.

Plymouth, Michigan-based Rivian spent about a decade working in stealth mode before debuting last year at the Los Angeles Auto Show.

The startup has developed an electric vehicle chassis with motors, batteries, controls and suspension that can be used to build multiple kinds of automobiles. This chassis, which Rivian refers to as the “skateboard,” is the basis of several vehicles that will begin hitting the market next year.

Rivian’s upcoming lineup is headlined by two high-end consumer models slated to launch at the end of 2020: the R1T pickup truck and the R1S sport utility vehicle. The startup is promising a driving range of up to 400 miles per charge for both vehicles with three-second acceleration to 60 miles per hour.

In parallel with its push into the consumer auto market, Rivian is developing a commercial electrical delivery van for Amazon likewise based on the skateboard chassis. Amazon Chief Executive Officer Jeff Bezos said in September that his company has placed an order for 100,000 vehicles to be delivered through 2024. The online retail giant is aiming to switch its entire global delivery fleet to renewable energy by 2030. 

Rivian will manufacture its vehicles at 2.6 million-square-foot facility in Normal, Illinois, that previously functioned as a Mitsubishi Motors Corp. plant. The startup has also opened several development centers around the world, including two in California, one in Canada and another in Surrey, England.

The $1.3 billion in funding announced today should enable Rivian to speed up the pace of its expansion significantly next year as it prepares to start shipping out the first vehicles to customers. Besides Amazon, the round saw the participation of Ford Motor Co., BlackRock Inc. and T. Rowe Price Associates, which led the investment.

The round is the fourth Rivian has closed in 2019. It previously raised $350 million from Cox Automotive Inc., $500 million from Ford and a $700 million investment in February that was led by Amazon.

The online retail giant made a number of notable transportation-related bets in 2019. In addition to backing Rivian, Amazon led a $530 million round into autonomous vehicle developer Aurora Innovation Inc. and a $575 million investment in U.K. food delivery unicorn Deliveroo. But the latter deal has not yet gone through on account of antitrust concerns from Britain’s competition watchdog, which recently warned that it may launch an “in-depth investigation” of Amazon’s investment. 

Photo: Rivian