Rivian and Volkswagen announced an upcoming JV to use Rivian’s next-gen electrical architecture and software in Volkswagen’s EVs. Rivian says both companies will combine their complementary strengths to lower the cost per vehicle by increasing the scale and accelerating innovation together.
Rivian’s proven in-market zonal hardware design and integrated technology platform are expected to serve as the foundation for future SDV development for both companies’ vehicles, and the tech is planned to integrate into cars sometime after 2025. Each company will continue to separately operate their respective vehicle businesses.
Volkswagen plans to invest $5 billion into Rivian, starting with $1 billion through an unsecured convertible note that will convert into Rivian’s common stock subject to regulatory approvals around December 1, 2024.
The companies report the JV should be formed by around Q4 2024.
Oliver Blume, CEO of Volkswagen Group said: “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 a lower cost. We are also acting in the best interest of our strong brands, which will inspire them with their iconic products. The partnership fits seamlessly with our existing software strategy, our products, and our partnerships. We are strengthening our technology profile and our competitiveness.”
RJ Scaringe, Founder and CEO of Rivian said: “We’re very excited to be partnering with Volkswagen Group. 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 recognized this. 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 transition away from fossil fuels through compelling products and services, and this partnership is beautifully aligned with that mission.”
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