Image: © trongnguyen/Stock.adobe.com
Both Volkswagen and Rivian aim to launch vehicles benefiting from the technology created through the joint venture in the second half of the decade.
Volkswagen Group has made a $5bn investment commitment in US electric car manufacturer Rivian as part of a new joint venture that will see the two collaborate on EV architecture and software.
In an announcement yesterday (25 June) California-based Rivian said that it intends to form an “equally controlled and owned” joint venture with Volkswagen that will play to the strengths of both parties and accelerate the development of software for the next generation of EVs.
Shares of Rivian, which was founded in 2009 and went public in 2021, surged by up to 50pc after the announcement.
“Since the earliest days of Rivian, we have been focused on developing highly differentiated technology, and it’s exciting that one of the world’s largest and most respected automotive companies has recognised this,” said RJ Scaringe, founder and CEO of Rivian.
“Not only is this partnership expected to bring our software and associated zonal architecture to an even broader market through Volkswagen Group’s global reach, but this partnership also is expected to help secure our capital needs for substantial growth.
“Rivian was created to help the world to transition away from fossil fuels through compelling products and services, and this partnership is beautifully aligned with that mission.”
Both Volkswagen and Rivian aim to launch vehicles benefiting from the technology created through the joint venture in the second half of the decade. In the short term, Volkswagen will use Rivian’s existing electrical architecture and software platform.
Volkswagen will invest an initial $1bn in Rivian by the end of this year – with up to $4bn in planned additional investment over the next few years.
“Our customers benefit from the targeted partnership with Rivian to create a leading technology architecture. Through our cooperation, we will bring the best solutions to our vehicles faster and at lower cost,” said Oliver Blume, CEO of Volkswagen Group.
“We are also acting in the best interest of our strong brands, which will inspire with their iconic products. The partnership fits seamlessly with our existing software strategy, our products and partnerships. We are strengthening our technology profile and our competitiveness.”
Find out how emerging tech trends are transforming tomorrow with our new podcast, Future Human: The Series. Listen now on Spotify, on Apple or wherever you get your podcasts.
