Arrival, a new vehicle manufacturer in Banbury, Oxfordshire, expects to raise over £498 million ($660 million) for its first electric bus mass production in 2021 and electric van in early 2022. The company also wants to be listed on the Nasdaq Stock Exchange in New York, raising its value to over £ 4 billion. This is expected to be achieved through merging with the CIIG Merger Corp.
Arrival has been operating in secret, and it has emerged to the world automotive industry in the past two years. Earlier on, the company has been producing EVs using robots and not production line models. Arrival has over 1300 employees who hail from the US and UK. The company claims that its electric vans’ will be almost the same as the fossil fuel vans and cheaper than other electric van rivals. This could be favorable to companies that manage vehicle fleets as these vans would be 17% cheaper than diesel vans.
The same day the listing announcement was made, the government announced the ban on sales of all conventional vehicles by 2030 and all hybrids by 2035. This gives a new promise and opportunity for all-electric vehicle manufacturers. Arrival’s chief strategy officer, Avinash Rugoobur, said that they are in an inflection point, where electric vehicle transition would speed off rapidly. He added that the company is generating some money that would enable it to open up some micro-factories in four years to come.
Avinash said that the company’s research and development centers would remain in the UK, in Banbury and London, together with its headquarters. The company expects to open some production sites globally, including a factory in South Carolina, USA. Avinash said that Arrival also plans to manufacture small passenger vehicles like taxis and consumer cars, saying that they have no limitation.
So far, Arrival has attracted investment worth hundreds of million pounds from BlackRock and Kia and Hyundai, which are Korean carmakers. The latest fundraising of $400 million is expected to come from BlackRock, Wellington Management, Fidelity, and BNP Paribus Asset Management. The money collected would be used to enable Arrival to fill orders from real clients for approximately $1.2 billion. In January, UPS, which is a US delivery company, has ordered over 10,000 electric vans. The company has also received orders from other potential customers. Arrival was established in 2014 by Denis Sverdlov, a Russian entrepreneur, and he will remain the company’s chief executive even after the listing.