January 24, 2021

Arrival’s Electric Vehicle Vision Gets $118 Million Boost From BlackRock

Arrival, an electric vehicle maker backed by Hyundai and Kia that’s preparing to build electric delivery vans for UPS, just raised $118 million from investment giant BlackRock
BLK
to fund small-scale factories that the U.K.-based startup says give its battery-powered models a cost advantage over competitors.

BlackRock’s investment is the biggest infusion of funds Arrival has won to date and comes days after the company said its first U.S. “microfactory” will be built in South Carolina. The $46 million facility will be able to make as many as 1,000 electric buses a year and employ 240 people when it opens late next year. Arrival’s first microfactory, in Bicester, England, also opens in 2021.

“This additional capital will be invested into Arrival’s growth, as we deepen and

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BlackRock Bets on Electric-Vehicle Startup Arrival With $118 Million Investment

The investment values the U.K.-based manufacturer at around €3 billion, equivalent to $3.5 billion, according to a person familiar with the matter. Arrival is expected to announce the investment later Wednesday.

BlackRock, the world’s biggest money manager overseeing $7.8 trillion in assets, is joining the startup’s existing backers—auto manufacturers

Hyundai Motor Co.

and

Kia Motors Corp.

Those companies together invested a total of €100 million in January.

BlackRock is investing at the same valuation as Hyundai and Kia because it had started its negotiation around the same time as the other two investors. However, the coronavirus pandemic slowed its talks, according to the person familiar with the matter. U.S. delivery company

United Parcel Service Inc.

is also an investor but the amount it has contributed couldn’t be learned. Together, the four investors will own an undisclosed minority stake, according to the person.

The fundraising is the latest in a wave

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