Amazon-backed EV maker Rivian in talks to build UK factory

Published

3 years ago

July 31, 2021

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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.

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”.

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.”

Rivian declined to comment this weekend.

UK

North Yorkshire: Man’s body recovered from area of flooding in Beal

Published

15 mins ago

January 6, 2025

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North Yorkshire: Man's body recovered from area of flooding in Beal

A man’s body has been recovered from an area of flooding in North Yorkshire, police have said, as major incidents have been declared in two counties.

The body was found near Intake Lane in Beal, close to Eggborough and Knottingley.

Police believe the man may have entered the water in the last 24 to 48 hours.

Follow the latest on the weather

North Yorkshire Police said: “Despite extensive enquiries, including with our colleagues in Humberside and West Yorkshire Police, we have been unable to identify him.

“He was found without any identification or personal belongings.”

The man was also described as white, in his early 50s to 60s, with light brown short hair and stubble.

He was wearing brown walking boots, blue denim jeans, a multicoloured knitted jumper and possibly a dark green waterproof coat, police added.

It comes after Leicestershire and Lincolnshire both declared a major incident in response to the extreme weather hitting the UK and Ireland.

Leicestershire Fire and Rescue was the first emergency service in England to declare an incident and said it had received more than 200 calls since Monday morning over widespread flooding.

Crews had found cars stuck in floodwater and evacuated residents from flooded homes and rising waters, with some 17 people rescued as of 1.45pm.

The Lincolnshire Resilience Forum declared a major incident shortly after, and noted that emergency services had rescued children who were stranded at a school in Edenham.

Meanwhile, the Met Office has three yellow weather warnings – each for snow and ice – in effect throughout Monday evening and Tuesday morning.

A warning covering the west and north coast of Scotland – reaching into Inverness and Aberdeen – will last until midday, while an alert in effect for all of Northern Ireland will last until 11am.

The Met Office has also issued a warning covering Wales and parts of northwest England on Monday evening, moving into southwest England, the Midlands and parts of southern England in the early hours of Tuesday.

On Wednesday, a yellow weather warning for snow is in effect across the south of England – stretching from just above Truro in Cornwall to Canterbury in Kent – from 9am to midnight.

UK

Man charged following reports of threats towards Jess Phillips, Sky News understands

Published

4 hours ago

January 6, 2025

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Man charged following reports of threats towards Jess Phillips, Sky News understands

A man has been charged following reports of threats towards Labour safeguarding minister Jess Phillips, Sky News understands.

Jack Bennett, 39, has been charged with three counts of malicious communications, Devon and Cornwall Police said.

The messages were sent between April 2024 and January 2025 involving three victims, including the Birmingham Yardley MP.

It is understood the accused, from Seaton, east Devon, was charged over the weekend.

He has been bailed to appear before Exeter Magistrates’ Court on 18 February 2025.

Earlier on Monday, Prime Minister Sir Keir Starmer spoke about a “line being crossed” regarding comments towards Ms Phillips and said that she had been receiving threats.

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UK

HMP Wandsworth prison officer filmed having sex with inmate sentenced to 15 months

Published

5 hours ago

January 6, 2025

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HMP Wandsworth prison officer filmed having sex with inmate sentenced to 15 months

A prison officer who was filmed having sex with an inmate has been sentenced to 15 months in jail.

Linda De Sousa Abreu, 31, was on duty at HMP Wandsworth in London when she entered the prisoner’s cell and had sex with him on 27 June.

The encounter was filmed by another inmate and lasted for almost five minutes.

She was identified by HMP Wandsworth staff and arrested by the Metropolitan Police at Heathrow Airport after the footage went viral on social media.

The prison officer was planning to fly to Madrid and telephoned the prison as she fled to the airport to say that she was not returning to work.

De Sousa Abreu then pleaded guilty to misconduct in a public office on 29 July last year.

The charge said the 31-year-old “wilfully and without reasonable excuse or justification misconducted yourself in a way which amounted to an abuse of the public’s trust in the office holder by engaging in a sexual act with a prisoner in a prison cell”.

Tetteh Turkson, of the Crown Prosecution Service, added last year that the incident was “a shocking breach of the public’s trust,” and that De Sousa Abreu “was clearly an enthusiastic participant who wrongly thought she would avoid responsibility”.

“The CPS recognises there is no excuse for any prison officer who conducts themselves in such a manner, and we will never hesitate to prosecute those who abuse their position of power,” she added.

“After working closely with the Metropolitan Police to build the strongest possible case, De Sousa had no option but accept she was guilty. She will now rightly face the consequences of her actions.”

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