Rivian Automotive and Volkswagen Group have scaled up the joint venture. The companies have set a new total investment that is said to stand upto $5.8 billion against an initially planned $5 billion. This deal should pave the way for the integration of Rivian’s electric vehicle technology into Volkswagen’s lineup. First models featuring Rivian’s software and electrical architecture are to go to market by 2027.
In a joint press release, the companies announced that the new investment structure provides room for additional VW capital in order to accelerate the shared technologies under development and deploy Rivian’s platform across various Volkswagen brands. As part of the agreement, Volkswagen will invest approximately $1.3 billion at closing, securing a 50% equity stake in the new venture, Rivian and VW Group Technology, LLC. This follows VW’s earlier $1 billion investment in the form of a convertible note.
Volkswagen Group CEO Oliver Blume emphasized that the partnership would bring Rivian’s technology to a wide range of global markets and vehicle segments. Initially, Rivian’s software will be integrated into vehicles from the Volkswagen brand, with plans to expand to Audi and VW’s new Scout brand. Blume also intimated that sports car brands like Porsche or Bentley might even use Rivian’s platform going forward.
According to Rivian CEO RJ Scaringe, the agreement is exciting and a possible great opportunity to shape and heighten innovation in the field of EV technology.
He noted that while the current deal focuses on software and electrical architecture, further collaborations, such as joint vehicle production or shared hardware components, could be explored in the future.
The new venture will be led by Rivian Chief Software Officer Wassym Bensaid and VW Group’s Chief Technical Engineer Carsten Helbing. Initial development teams will be based in Palo Alto, California, with additional sites planned in North America and Europe. The expanded partnership is seen as pivotal for both companies as they scale production of next-generation electric vehicles.
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