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

Published

4 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

UK weather: Yellow heat health alerts issued for most of England

Published

11 hours ago

June 17, 2025

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UK weather: Yellow heat health alerts issued for most of England

Yellow heat health alerts have been issued for most of England – with temperatures forecast to hit highs of 33C (91F) this weekend.

Only the North East and North West are exempt from the UK Health Security Agency’s (UKHSA) latest warning, which comes into force at 12pm on Wednesday and expires at 6pm on Sunday.

The alert indicates that people with pre-existing health conditions, and those aged over 65, could be at higher risk.

Forecasters say the East of England is likely to see the highest temperatures, which wouldn’t be far off the June record of 35.6C (90F) set in 1976.

According to the Met Office, it will get progressively warmer as the week progresses – with the heat peaking on Sunday.

Deputy chief meteorologist Dan Holley said thundery showers may be possible heading into Saturday morning, with “tropical nights” a possibility as parts of the UK approach heatwave territory.

The forecast means we are likely to see the hottest day of the year so far – eclipsing the 29.4C (85F) recorded last Friday in Suffolk.

In a delicious twist, ice cream makers have said “it’s their Christmas time”, with some making fresh supplies around the clock.

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UK

US-UK trade deal ‘done’, says Trump as he meets Starmer at G7

Published

22 hours ago

June 17, 2025

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US-UK trade deal 'done', says Trump as he meets Starmer at G7

The UK-US trade deal has been signed and is “done”, US President Donald Trump has said as he met Sir Keir Starmer at the G7 summit.

The US president told reporters in Canada: “We signed it, and it’s done. It’s a fair deal for both. It’ll produce a lot of jobs, a lot of income.”

Sir Keir said the document “implements” the deal to cut tariffs on cars and aerospace, describing it as a “really important agreement”.

“So this is a very good day for both of our countries – a real sign of strength,” the prime minister added.

Mr Trump added that the UK was “very well protected” against any future tariffs, saying: “You know why? Because I like them”.

However, he did not say whether levies on British steel exports to the US would be set to 0%, saying “we’re gonna let you have that information in a little while”.

What exactly does trade deal being ‘done’ mean?

The government says the US “has committed” to removing tariffs (taxes on imported goods) on UK aerospace goods, such as engines and aircraft parts, which currently stand at 10%.

That is “expected to come into force by the end of the month”.

Tariffs on car imports will drop from 27.5% to 10%, the government says, which “saves car manufacturers hundreds of millions a year, and protects tens of thousands of jobs”.

The White House says there will be a quote of 100,000 cars eligible for import at that level each year.

But on steel, the story is a little more complicated.

The UK is the only country exempted from the global 50% tariff rate on steel – which means the UK rate remains at the original level of 25%.

That tariff was expected to be lifted entirely, but the government now says it will “continue to go further and make progress towards 0% tariffs on core steel products as agreed”.

The White House says the US will “promptly construct a quota at most-favoured-nation rates for steel and aluminium articles”.

Other key parts of the deal include import and export quotas for beef – and the government is keen to emphasise that “any US imports will need to meet UK food safety standards”.

There is no change to tariffs on pharmaceuticals for the moment, and the government says “work will continue to protect industry from any further tariffs imposed”.

The White House says they “committed to negotiate significantly preferential treatment outcomes”.

Mr Trump also praised Sir Keir as a “great” prime minister, adding: “We’ve been talking about this deal for six years, and he’s done what they haven’t been able to do.”

He added: “We’re very longtime partners and allies and friends and we’ve become friends in a short period of time.

“He’s slightly more liberal than me to put it mildly… but we get along.”

Sir Keir added that “we make it work”.

As the pair exited a mountain lodge in the Canadian Rockies where the summit is being held, Mr Trump held up a physical copy of the trade agreement to show reporters.

Several leaves of paper fell from the binding, and Sir Keir quickly stooped to pick them up, saying: “A very important document.”

The US president also appeared to mistakenly refer to a “trade agreement with the European Union” at one point as he stood alongside the British prime minister.

Mr Trump announced his “Liberation Day” tariffs on countries in April. At the time, he announced 10% “reciprocal” rates on all UK exports – as well as separately announced 25% levies on cars and steel.

In a joint televised phone call in May, Sir Keir and Mr Trump announced the UK and US had agreed on a trade deal – but added the details were being finalised.

Ahead of the G7 summit, the prime minister said he would meet Mr Trump for “one-on-one” talks, and added the agreement “really matters for the vital sectors that are safeguarded under our deal, and we’ve got to implement that”.

UK

Whitehall officials tried to cover up grooming scandal in 2011, Dominic Cummings says

Published

1 day ago

June 16, 2025

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Whitehall officials tried to cover up grooming scandal in 2011, Dominic Cummings says

Whitehall officials tried to convince Michael Gove to go to court to cover up the grooming scandal in 2011, Sky News can reveal.

Dominic Cummings, who was working for Lord Gove at the time, has told Sky News that officials in the Department for Education (DfE) wanted to help efforts by Rotherham Council to stop a national newspaper from exposing the scandal.

In an interview with Sky News, Mr Cummings said that officials wanted a “total cover-up”.

Politics latest: Grooming gangs findings unveiled

The revelation shines a light on the institutional reluctance of some key officials in central government to publicly highlight the grooming gang scandal.

In 2011, Rotherham Council approached the Department for Education asking for help following inquiries by The Times. The paper’s then chief reporter, the late Andrew Norfolk, was asking about sexual abuse and trafficking of children in Rotherham.

The council went to Lord Gove’s Department for Education for help. Officials considered the request and then recommended to Lord Gove’s office that the minister back a judicial review which might, if successful, stop The Times publishing the story.

Lord Gove rejected the request on the advice of Mr Cummings. Sources have independently confirmed Mr Cummings’ account.

Mr Cummings told Sky News: “Officials came to me in the Department of Education and said: ‘There’s this Times journalist who wants to write the story about these gangs. The local authority wants to judicially review it and stop The Times publishing the story’.

“So I went to Michael Gove and said: ‘This council is trying to actually stop this and they’re going to use judicial review. You should tell the council that far from siding with the council to stop The Times you will write to the judge and hand over a whole bunch of documents and actually blow up the council’s JR (judicial review).’

“Some officials wanted a total cover-up and were on the side of the council…

“They wanted to help the local council do the cover-up and stop The Times’ reporting, but other officials, including in the DfE private office, said this is completely outrageous and we should blow it up. Gove did, the judicial review got blown up, Norfolk stories ran.”

The judicial review wanted by officials would have asked a judge to decide about the lawfulness of The Times’ publication plans and the consequences that would flow from this information entering the public domain.

A second source told Sky News that the advice from officials was to side with Rotherham Council and its attempts to stop publication of details it did not want in the public domain.

One of the motivations cited for stopping publication would be to prevent the identities of abused children entering the public domain.

There was also a fear that publication could set back the existing attempts to halt the scandal, although incidents of abuse continued for many years after these cases.

Sources suggested that there is also a natural risk aversion amongst officials to publicity of this sort.

Read more on grooming gangs:
What we do and don’t know from the data
A timeline of the scandal

Mr Cummings, who ran the Vote Leave Brexit campaign and was Boris Johnson’s right-hand man in Downing Street, has long pushed for a national inquiry into grooming gangs to expose failures at the heart of government.

He said the inquiry, announced today, “will be a total s**tshow for Whitehall because it will reveal how much Whitehall worked to try and cover up the whole thing.”

He also described Mr Johnson, with whom he has a long-standing animus, as a “moron’ for saying that money spent on inquiries into historic child sexual abuse had been “spaffed up the wall”.

Asked by Sky News political correspondent Liz Bates why he had not pushed for a public inquiry himself when he worked in Number 10 in 2019-20, Mr Cummings said Brexit and then COVID had taken precedence.

“There are a million things that I wanted to do but in 2019 we were dealing with the constitutional crisis,” he said.

The Department for Education and Rotherham Council have been approached for comment.