Technology company focused on commercial electric vehicles, Arrival, has raised US$118m from funds managed by BlackRock.
The fundraising will be used to support execution of the company’s growth plans as it ramps up vehicle production, including the launch of Arrival’s first US microfactory in South Carolina.
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Arrival uses low CapEx, rapidly scalable microfactories, which can be placed anywhere in the world to serve the regions in which they are located.
These microfactories, combined with proprietary in-house developed components, materials and software, enable the production of vehicles which Arrival maintains are competitively priced to fossil fuel variants.
The approach reduces the costs of production and emissions of shipping and does not require large upfront investment, creating strong unit economics for the whole of Arrival’s product portfolio, including its electric van and bus announced earlier this year.
“We are excited to welcome BlackRock as a strategic financial investor with its excellent track record in ESG,” said Arriva founder and CEO, Denis Sverdlov.
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By GlobalData“This additional capital will be invested into Arrival’s growth, as we deepen and expand our presence in the US and other new markets globally. With our new microfactory in South Carolina, we are looking forward to partnering with more cities and companies to create a sustainable future.”
Arrival has made inroads in the commercial electric vehicle market, having received an order for 10,000 electric vans from UPS, with the option for a further 10,000. This investment is a reflection of the significant market opportunity for electric vehicles, particularly in the commercial segment, which continues to grow with increasing demand for e-commerce.
The new funding will support Arrival’s plans to scale its microfactory footprint in both the US and Europe. As part of its American strategy, the company announced the launch of its first US microfactory in York County, South Carolina, an investment of US$46m into the region and the creation of local jobs.
Arrival will start fitting out the unit and is expected to begin operations in Q2, 2021, with start of production in Q4, 2021. Arrival’s microfactories produce 10,000 vans or 1,000 buses per year.
BlackRock joins other investors in the company including Hyundai, Kia and UPS.
