An electric vehicle (EV) manufacturer backed by Amazon and Ford is in talks with ministers about building a giant factory in the UK that could include a big state support package.
Sky News has learnt that Rivian, which is also backed by the Ford Motor Company and many of the biggest investors in Silicon Valley, has been in secret negotiations with the British government for weeks about the construction of a plant near Bristol.
The talks are not yet at an advanced stage, and Britain is facing competition from rival proposals from Germany and the Netherlands, according to industry sources.
Any investment decision is likely to be ultimately worth well over £1bn, they added.
If Rivian does opt to build a plant in the UK – which would be its first outside the US – it would represent another major boost to the country’s automotive sector following recent announcements from Nissan and Stellantis, the owner of Vauxhall.
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Rivian raised another $2.5bn (£1.8bn) from investors earlier this month, taking the total sum it has raised since 2019 to a gargantuan $10.5bn (£7.5bn).
RJ Scaringe, the company’s founder and chief executive, said the latest capital injection would enable it “to scale new vehicle programmes, expand our domestic facility footprint, and fuel international product rollout”.
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Customer deliveries of its R1T electric trucks, which will sell from $67,500 (£48,500), are due to begin in the autumn – although they have faced previous delays.
The talks with ministers are understood to be focused on a facility to manufacture Rivian vehicles, rather than the batteries used to power them, although insiders said that the negotiations were fluid and could yet shift towards a gigafactory.
Several companies are discussing building gigafactories in the UK, reportedly including the South Korean conglomerates LG and Samsung.
Boris Johnson has been briefed on the Rivian discussions and is said to be taking a keen interest in their progress, according to one industry executive.
The nature of a government subsidy package is not yet defined and it was unclear this weekend whether Rivian had yet to make any formal requests for funding or tax breaks from ministers.
Rivian is said to have identified Gravity, a 616-acre campus near Bristol, as one potential site for a new manufacturing plant.
Its existing factory is in Normal, Illinois – which it acquired from Mitsubishi Motors in 2017 – and last week the company confirmed that it was looking for another location in the US to build its vehicles.
The electric vehicle (EV) group is also reported to be preparing to launch an initial public offering in New York as soon as this year that would value it at as much as $70bn (£50.3bn).
That would make it far smaller in market value terms than Tesla, Elon Musk’s EV company, which has a market value of $680bn (£489bn) and has seen its shares more than double during the last year.
Nevertheless, at a valuation north of $50bn, Rivian would be one of the world’s largest publicly traded EV companies.
Its other shareholders include BlackRock, the world’s biggest asset manager, the hedge fund Third Point and Dragoneer Investment Group, a prolific technology investor.
Rivian’s biggest customer to date is Amazon, which has placed an order for 100,000 EV trucks, production of which is scheduled to start this year.
A decision on whether to proceed with a plant in the UK or on the Continent is expected in the next few months.
If it does move ahead in Britain, it would further confound predictions that the country’s automotive sector was headed for terminal decline after Brexit.
Honda’s decision to close its plant in Swindon, announced in 2019, was seen as a major blow to the industry, with Nissan warning that its future investment would be jeopardised if Britain left the trading bloc.
Recent developments involving both the Japanese carmaker and Stellantis have revived hopes of a brighter future for automotive manufacturing in the UK.
The government’s decision to ban the sale of new petrol and diesel cars by 2030 and hybrid vehicles by 2035 has accelerated the need for a huge shift in manufacturing capability.
There remain significant concerns, though, that the provision of EV charging infrastructure will fail to keep pace with demand.
A BEIS spokesperson said: “While we are working to attract inward investment into the UK to accelerate the growth of new industries, we cannot comment on speculation about individual investments.”
There are 1,210 completed homes which cannot be occupied because of delays in the work of the government’s building safety regulator, Sky News can reveal.
The safety inspection regime created in the wake of the Grenfell tragedy, which claimed 72 lives, is “not fit for purpose”, according to those who depend on its work.
Sky News has visited an empty block of 99 flats in west London where future residents – who have purchased the properties – have been unable to move in for over a year because of the lack of regulator approval.
New data obtained exclusively by Sky News through a Freedom of Information request shows the extent of the issue.
Image: An empty block of 99 flats in Acton, west London
As of 1 August, there is “no decision” on eight applications covering 1,210 completed new residential units. For sites yet to be built, there are 156 applications with no decision, covering 34,965 new residential units.
Sir Keir Starmer says economic growth is his top priority and the 1.5 million new homes target this parliament is a key part of this agenda. But two years after its creation, the government agency has come under fire for failing to fulfil vital functions in a timely manner.
After complaints, the regulator has already faced one overhaul, and will shortly move from part of the Health and Safety Executive (HSE) to become an arm’s length body which is part of Angela Rayner’s Ministry of Housing, Communities and Local Government. But developers say they are still struggling to get answers from the body.
Image: Sir Keir Starmer has made new homes a major priority. Pic: Jack Taylor/PA
Sky News has conducted an analysis of public data and found the backlog growing.
New buildings ought to be signed off within a 12-week period, but Sky News found the percentage of applications determined inside that window is falling – from 47% at the end of September last year, to 32% by the end of March.
In a statement, leading financial analyst S&P said delays by the regulator are pushing up building costs and making it harder to deliver the key government target.
Chris Williamson, chief business economist at S&P, said: “We have received anecdotal feedback from a few companies regarding the Building Safety Act, indicating that some may be experiencing challenges related to orders. This could contribute to an increase in costs within the construction sector, which is already facing financial pressures.”
In an apparent admission of the issues, the government told Sky News it is now in the process of recruiting over 100 new staff to strengthen capacity by the end of the year.
In a statement to Sky News, the building safety regulator (BSR) itself said it had been a complex task creating a new safety body post Grenfell, in such a short time, and improvements are already being made.
It said: “BSR is working closely with industry to deliver safer, higher-quality buildings while advancing a culture of excellence in building safety.”
Executives from the BSR will appear before a Commons Select Committee later today. It also points the finger at property developers for failing to submit paperwork correctly. The industry vehemently rejects the claim, saying there are few guidelines of what to submit and the BSR makes little attempt to clarify what it wants.
A bad sign
However, problems persist.
Sky News saw how in one newly built property in Acton, west London, the sign-off for a building by the BSR was delayed in part because a sign was two millimetres too small and all the signs had to be changed.
This has contributed to a 14-month delay in a green light for residents to move in.
According to the Federation of Master Builders and the Chartered Institute of Building, 38% of developers believe planning delays are the number one issue.
Developers have told Sky News the agency was meant to speed up approvals by ending a system where they have to bring in external consultants to approve the application, but this has not yet happened.
Jon Spring, the managing director of Fairview Homes, said: “We currently have three applications that are delayed within the BSR. The current dates we’re looking at, that they’ve given us, one is six months, one is nine months, and one is 12 months. Clearly extremely different to the original three months that the process is supposed to take.
“That makes forecasting for when we’re going to start on site very difficult. We have tens of millions of pounds tied up in the three sites that we’re waiting to develop. And inevitably, the holding costs of those are considerable and affect the viability of the project.”
Image: Jon Spring, managing director of Fairview Homes
Mr Spring said the delays could make building unviable.
“If you look at each of our projects have been delayed, if […] it’s going to take 25% longer to deliver that project, that means that our productivity is ultimately reduced by 25%. That would be the same for all developers and therefore the reduction in housing that’s been delivered will be considerable.”
Developers ‘won’t touch’ high-rises
Jamie Lester, an estate agent from Haus Properties, said: “The government are encouraging property developers to build, build, build, and just get on with it – I think that’s what Keir Starmer said.
“But when there are buildings like this that can’t be signed off for over a year and are costing property developers, in this instance, £100,000 a week, I don’t understand.
“The government won’t encourage property developers to build like this any more. I know many property developers who won’t touch high-rise buildings at the moment simply because the building safety regulator can’t get their act together and sign these buildings off.”
Image: Jamie Lester, estate agent from Haus Properties
‘High standards’
A spokesperson for the HSE said: “Protecting residents, making sure there is never another tragedy like Grenfell, has been our priority throughout this process. Setting up a new regulator has been complex, and huge progress has been made in a short time. The construction industry must meet standards that will keep residents safe in high-rise buildings.
“The recently announced innovation unit is the result of ongoing discussions between industry and BSR to uphold high standards. BSR is working closely with industry to deliver safer, higher-quality buildings while advancing a culture of excellence in building safety.”
‘It has turned out to be a disaster’
Some have blamed the government, not the regulator itself. The boss of one major house building company, who did not want to be named, said ministers aren’t willing to face up to reality.
“Regulation comes from the government and the regulator is implementing the rules,” they said. “Their mandate is nothing to do with housing supply so it’s up to ministers to balance that. All the house builders said this would be a disaster and funnily enough it has turned out to be a disaster.”
A government spokesman from the housing department said problems were already being tackled and safety was important: “We’ve announced a package of reforms to reduce delays, including a fast track process to speed up new build decisions.”
Facing criticism for being on the back foot after a summer of protest outside asylum hotels, they were keen to defend their record and get back on track – but is it too late?
It’s a clear nod to the political void Reform UK has seized on while the prime minister has been on holiday.
Last week, Nigel Farage unveiled his party’s mass deportation policy – though the issue of women and children still seems to be worked out.
But perhaps none of that matters as voters overwhelmingly believe Reform cares about this issue – and as Chris Philp, the shadow home secretary, pointed out on Monday, voters have lost confidence in the government somewhat to solve what many see as an immigration crisis on their doorstep.
So it’s clear the strategy has changed from the government.
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‘Substantial reforms are needed now’
Gone are the bold slogans of “smashing the gangs” and instead, detail and policy was given on Monday. It was nothing new, but more substance on what the government has done and where they want to move to. Even controversially, reassessing their relationship with the European Convention on Human Rights (ECHR).
The biggest update though, was on their one-in-one-out policy agreement with France, which will now set to start returns later this month.
It’s finally hit home for the government that the public want proof not just rhetoric, and they want to know crucially when they will start to see change.
But the fightback, the reset, whatever the government wants to call it, will only make a difference once that finally starts to work.
Police are asking for help with an unsolved case, 52 years after the murder of a schoolboy in Belfast.
Brian McDermott was 10 when he disappeared from Ormeau Park on Sunday 2 September 1973. His remains were recovered from the River Lagan almost a week later.
Detectives from the Police Service of Northern Ireland’s Legacy Investigation Branch have given a timeline of events as part of their appeal.
Brian left his home on Well Street in the lower Woodstock Road area of east Belfast at around 12.30pm and failed to return for his Sunday dinner.
Detectives said he was last seen playing alone in the playground between 1pm and 3pm that afternoon.
His remains were recovered in the water, close to the Belfast Boat Club.
Image: River Lagan, where the remains of schoolboy Brian McDermott were recovered. Pic: PSNI handout/PA
A PSNI spokesperson said: “We are acutely aware of the pain and suffering that Brian’s family continue to feel, and our thoughts very much remain with the family at this time.
“Despite the passage of time, this murder case has never been closed and I am hopeful that someone may be able to provide information, no matter how small, which may open a new line of inquiry, or add a new dimension to information already available.
“It is also possible that someone who did not volunteer information at the time may be willing to speak with police now. Legacy Investigation Branch Detectives will consider all investigative opportunities as part of the review into Brian’s murder.”