Rivian and Volkswagen Launch $5.8 Billion Joint Venture to Innovate Electric Vehicle Technology
Rivian Automotive and Volkswagen Group have partnered to establish their new joint venture, "Rivian and VW Group Technology, LLC", officially named Rivian and Volkswagen Group Technologies. With a total investment reaching up to $5.8 billion, the venture will commence on November 13. This collaboration will pioneer advanced electrical architecture and top-tier software technology for future electric vehicles from both brands, spanning all key vehicle segments, including subcompact cars. The synergy between Rivian’s leading-edge software and electrical hardware technology and Volkswagen Group’s vast global presence and industry-leading vehicle platform expertise is set to redefine the electric vehicle landscape.
Wassym Bensaid from Rivian and Carsten Helbing from Volkswagen Group will lead the joint venture. Developers and software engineers from both companies will come together, initially working out of Palo Alto, California, with additional sites planned across North America and Europe. This strategic partnership aims to decrease development costs and accelerate the advancement of new technologies, ultimately delivering superior technological solutions to customers promptly.
Oliver Blume, CEO of Volkswagen Group, stated, "Partnering with Rivian represents a strategic step forward in our software ambitions. This venture will bolster our competitive and technological edge globally. With the joint venture now operational, we foresee significant opportunities to harness synergies in the years ahead. We are committed to delivering exceptional products and digital experiences at compelling prices, made possible through cutting-edge development processes and innovative technological initiatives."
RJ Scaringe, Founder and CEO of Rivian, commented, "Finalising our joint venture with Volkswagen Group is a crucial advancement in promoting global electric vehicle adoption. We are excited to integrate our technology into vehicles beyond Rivian and anticipate a bright future. Rivian remains dedicated to producing top-quality products and services encouraging electric vehicle uptake."
The joint venture plans to utilise Rivian's existing electrical architecture and software technology stack. This will support the launch of Rivian’s R2 model in the first half of 2026 and facilitate the earliest introduction of Volkswagen Group’s first models by 2027.
The venture will refine this modular and adaptable state-of-the-art electrical architecture, scaling the technology across diverse price points and international markets. This strategy will introduce new generations of high-volume vehicles equipped with advanced automated driving capabilities and the potential for over-the-air updates and upgrades, ensuring continuous value enhancement throughout the vehicle's lifecycle.
The collaborative efforts of the Rivian and Volkswagen Group teams have already yielded promising results, including the development of a drivable demonstrator vehicle within twelve weeks, showcasing the scalable, scalable and integrative prowess.
Carsten Helbing, the future co-CEO of the joint venture, remarked, "We have made a successful beginning. In recent months, we’ve laid the groundwork for merging our teams and pooling our resources. We are delighted with the swift progress made during the preparatory phase, setting a solid foundation for our future endeavours."
Wassym Bensaid, co-CEO of the joint venture, expressed, "Entering this joint venture is exhilarating, and we welcome our new colleagues from Rivian and Volkswagen Group. We aim to accelerate innovation, enhance scalability, and reduce electric vehicle ownership costs globally. The work accomplished thus far is impressive, and while the demonstrator vehicle is just a start, it underscores the vast potential of collaboration between a new OEM and an established automaker."
Volkswagen Group is set to invest up to $5.8 billion in Rivian and the joint venture by 2027, including an initial investment of $1 billion via a convertible note. Upon closing the joint venture, Volkswagen Group will contribute approximately $1.3 billion for background IP licenses and a 50% equity stake in the joint venture. The partnership aims to leverage consumer benefits related to innovation, scalable platforms, and cost savings and enhanceenhance R&D efficiency to cut overall expenses sustainably.