Volkswagen Group taps into Rivian’s tech expertise.
Rivian is known for its cutting-edge electric vehicle technology and expanding adventure-ready EV lineup. Now, its presence as a manufacturer in the EV industry is on the cusp of expanding much further, as it is announcing its mutual intention to join forces with Volkswagen Group. The automotive giant, responsible for brands like Volkswagen, Audi, Porsche, Lamborghini, and Bentley, intends to partner with Rivian in an equally owned and controlled joint venture.
Rivian and Volkswagen Group's shared goal in their partnership is to create next-generation EV architecture and vehicle software. Both companies plan to leverage each other's strengths to accelerate the development of their EV technologies. As the joint venture takes shape, Rivian will provide its hardware design, technology platform, and architecture to vehicles from both companies.
Volkswagen Group plans to invest $5 billion in Rivian, starting with $1 billion through an unsecured convertible note that will convert into Rivian common stock. The other $4 billion will be invested afterward. The joint venture is expected to take shape in full in the fourth quarter of 2024, beginning a new era of electric vehicles that benefit from the strengths of both entities.
