Embattled EV startup Arrival has raised $300m (£246.5m) from Westwood Capital but is seeking even more funding as it looks to slow the rate it burns through cash and start production.
Arrival said the new cash influx extends its runway to “late 2023”. The company is aiming to start production of its Class 4 XL van in its Charlotte, US, factory in late 2024.
Arrival, which was founded in Britain but listed on the US Nadaq exchange in 2021 through a merger with a special purpose acquisition company, is yet to report any revenue. It anticipates losses for 2022 to be as high as £840m.
Igor Torgov, CEO, Arrival, said: “Arrival has developed innovative technologies and know-how which position us strongly to address the considerable EV market opportunity.
“We have now taken important steps to help us take advantage of this opportunity, including raising additional capital as well as placing a sharper focus on the key U.S. market and driving significant efficiency improvements.”
The company last week cited an upcoming capital injection as the reason for delaying its annual business update.
Arrival is focusing heavily on its cash flow and liquidity. In February, it sold a £41.4m equity slice to Antara and was also provided £100m in debt.
Plans for Arrival include building 10 vans at its Bicester, UK, microfactory to develop its robotic assembly process. The vans are then expected to drive 250,000 km on public roads before the end of the year, the company said.
This is despite Arrival saying it would be shipping its electric vans from Bicester at the end of last year but has since shifted production over to Charlotte, US.
Torgov added: “We are also progressing with encouraging conversations with potential partners and investors to affect the next stage of the business plan – bringing Vans into production in Charlotte in late 2024.”
At the start of the year, the mobility startup announced it was slashing its workforce in half and appointed Torgov as CEO.