A startup that's building electric trucks in a factory in downstate Normal just raised $700 million in a new funding round led by Amazon.
Rivian, a Michigan-based electric truck startup, announced the new investment Friday, which comes three months after the company unveiled its all-electric pickup truck and SUV models at the LA Auto Show.
The startup will produce its vehicles in a 2.6-million-square-foot manufacturing plant in Normal, which was formerly a Mitsubishi plant. Rivian paid $16 million for the shuttered plant in 2017. Rivian also has development centers in Plymouth, Mich.; San Jose, Calif.; Irvine, Calif; and Surrey, England.
"This investment is an important milestone for Rivian and the shift to sustainable mobility," RJ Scaringe, Rivian's founder and CEO, said in a statement. "Beyond simply eliminating compromises that exist around performance, capability and efficiency, we are working to drive innovation across the entire customer experience."
Rivian says it plans to launch its pickup truck and SUV models in the U.S. in late 2020, and overseas starting in 2021. The startup is currently accepting pre-orders for both vehicles.
An electric vehicle might seem like an unusual investment for Amazon, but it's actually the second automotive company the e-commerce giant has backed this month. It invested in self driving car startup Aurora's $530 million round, along with Sequoia and Shell's investment arm.
Analysts believe Amazon could use Rivian as a platform for delivery trucks, as the company continues to invest in new ways to deliver packages to your door.
Rivian's growth in the electric vehicle market now puts it in direct competition with Tesla. CEO Elon Musk has said that a prototype for Tesla's much-anticipated pickup truck could be unveiled as early as this summer.
Rivian says its trucks will be able to travel more than 400 miles on a single charge.
Rivian will receive more than $49 million in Illinois state tax credits over 15 years if it hits certain hiring targets. It expects to create 1,000 jobs in Normal by 2024.
