BlackRock invests over $100 million in UK electric bus-and-van maker Arrival, expanding push into greener transport

• BlackRock has invested $118 million into British electric-powered vehicle startup Arrival, expanding its push into sustainable transport technology.
• The investment values Arrival at about 3 billion euros ($3.5 billion), according to the Wall Street Journal.
• Arrival makes electric-powered city buses and commercial vans, and claims its vehicles can travel up to 300 miles without recharging.
• BlackRock joins the startup's other existing investors — auto manufacturers Hyundai Motor Company and Kia Motors Corporation, and logistics firm UPS.
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UK-based electric bus and van maker Arrival has received a $118 million investment from global asset manager BlackRock, the company announced on Wednesday.

The new investment values Arrival at about 3 billion euros ($3.5 billion), the Wall Street Journal reported, citing a source.

BlackRock, with about $7 trillion in assets under management, has already made inroads into the green transport sector. Last year, it contributed towards a $1.3 billion investment into Tesla rival Rivian, whose R1T truck is expected to go on sale in 2021.

London-based Arrival manufactures electric-powered city buses and commercial vans, and says on its website that its vehicles can travel up to 300 miles without recharging.

Blackrock joins the British startup's existing investors — Korean motor manufacturers Hyundai Motor Company and Kia Motors Corporation, and logistics service UPS. The four investors will together own an undisclosed minority stake in Arrival, WSJ said.

Arrival, which was founded in 2015, said its fundraising will be used to execute plans to ramp up vehicle production, including the expansion of its microfactories in the US and Europe.

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A $46 million investment will be solely directed towards its first microfactory, or a highly automated manufacturing space, in South Carolina.

At its current microfactories, Arrival produces 10,000 vans, or 1,000 buses a year.

"This additional capital will be invested into Arrival's growth, as we deepen and expand our presence in the U.S. and other new markets globally," Denis Sverdlov, founder and CEO of Arrival, said in a statement.

The company said it has made "major inroads" in the commercial EV market with an order of 10,000 electric vans from UPS that could possibly extending to include a further 10,000.

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