Volkswagen Group has increased its investment in its joint venture with electric vehicle maker Rivian Automotive, bringing the total investment to $5.8 billion, up from the original $5 billion. The deal, which is set to begin operations this Wednesday, will see the first Volkswagen models integrating Rivian’s software and electrical architecture by 2027. Rivian’s shares saw a 6% increase in after-hours trading following the announcement.
The increase in investment comes as both companies adjusted the structure of the deal, accelerating some of VW’s future capital contributions. The revised deal includes changes in equity investment and other terms. Volkswagen Group’s CEO, Oliver Blume, emphasized that the German automaker intends to use Rivian’s technology across various price points, international markets, and brands. Initially, Rivian’s software integration will begin with the Volkswagen brand, followed by Audi and VW’s Scout brand. Sports car brands, including Porsche and Lamborghini, could also potentially adopt the technology, although Blume did not confirm any specifics.
Rivian CEO RJ Scaringe expressed excitement about seeing Rivian’s technology incorporated into vehicles outside of its own brand, looking ahead to future collaborations. However, both Scaringe and Blume noted that additional plans, such as shared battery modules or joint vehicle production, would be separate from the current agreement.
The joint venture, named Rivian and VW Group Technology, LLC, is expected to close in the fourth quarter. Volkswagen has already made an initial investment of $1 billion in the form of a convertible note. Upon the official closing, VW will invest $1.3 billion for a 50% equity stake in the venture and background IP licenses. An additional investment of up to $3.5 billion is anticipated by 2027, which will be distributed through equity, convertible notes, and debt, contingent on meeting defined milestones.
This joint venture aligns with Rivian’s efforts to ramp up production for its upcoming R2 SUVs, set to begin production in 2026, and to continue developing its midsize EV platform. Rivian had paused construction on its plant in Georgia earlier this year but is expected to resume soon.
The joint venture will be led by Rivian’s Chief Software Officer Wassym Bensaid and Volkswagen Group’s Chief Technical Engineer Carsten Helbing. The companies plan to establish development centers in Palo Alto, California, with additional sites in North America and Europe.
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