Rivian And Volkswagen Group Confirm EV Joint Venture

Rivian and Volkswagen Group have announced the formation of a new joint venture (JV) focused on accelerating electric vehicle technology and production. The JV, named Rivian and VW Group Technology, LLC, is backed by a substantial $5.8 billion investment from Volkswagen, which will kick off on November 13^th, 2024, with completion by 2027. The funding includes an initial $1 billion convertible note, $1.3 billion in intellectual property licenses and an equity stake, along with up to $3.5 billion in future equity, notes, and debt.

By leveraging Rivian’s electric vehicle software expertise and Volkswagen’s extensive experience in vehicle platforms and global scale, the JV aims to develop advanced EV architectures across multiple vehicle segments.

The collaboration will be co-led by Rivian’s Head of Software Development, Wassym Bensaid, and Volkswagen Group chief technical engineer Carsten Helbing, with initial operations planned to launch in Palo Alto, California. Plans are already underway to expand with three additional locations across North America and Europe. The new technology and platforms will be used to support international EV markets.

Rivian and VW Group Technology, LLC will focus on developing modular EV architectures that are adaptable across various price points and vehicle types, including subcompact models. The new architecture will also feature flexible software and electronics platforms with features like over-the-air updates, keeping vehicle systems current and customizable. A drivable demonstrator vehicle has already been built, with the demonstrator completed in just 12 weeks.

One of the JV’s first major projects includes the launch of Rivian’s R2 midsize crossover, set for release in the first half of 2026. Volkswagen’s initial models using this advanced architecture and technology are expected to arrive in 2027, marking an ambitious timeline for both brands as they seek to expand their EV offerings.

“We have made a successful start. Over the past few months, we’ve created the framework for bringing together the JV teams and pooling our resources. We are thrilled with the rapid progress we have achieved in the preparatory phase,” said co-CEO Helbing. “This has laid the foundation for our future success.”