The joint venture between Volkswagen (VW) and electric vehicle (EV) manufacturer Rivian, which was firstannouncedin the summer, has been put in motion. The $5.8 billion project’s wheelsofficiallystarted turning on November 13, 2024.
Rivian and VW Group Technology, LLC
Initially agreed at $5 billion, VW is now putting an extra $800 million into the “Rivian and VW Group Technology” venture. The agreement includes the development of advanced electrical architecture, software, and technology for EVs from both companies.
The partnership kicked off with the companies unveiling a promising prototype—a VW vehicle loaded with Rivian software, which the project’s team worked on for three months.
Financial Details
The first financial step in the deal will be VW handing over $1 billion of the agreed funds to Rivian, followed by a further $1.3 in Rivian shares. The remaining amount will be loaned over the next several years.
For Rivian, this monetary boost could not have come at a better time, and will bring with it some much-needed financial stability. The company has experienced some disappointing quarterly losses in recent years, necessitating several rounds of layoffs.
EV Lineups
The new technology produced from this partnership will be put into powering a wide range of EVs, including those in Rivian’s E2 series, a line of budget-friendly compact cars that Rivian will start making in 2026, with roll-out planned for the following year.
VW and its subsidiaries, including Audi and Porsche, will also see upgrades to their vehicles, like the Audi Q6 e-tron and the Porsche Macan EV. Scout Motors, another VW brand specializing in rugged vehicles for off-road use, is planning to use the tech in its upcoming line of electric trucks and SUVs.
Project Leadership
Jointly running the project are Rivian’s Wassym Bensaid and VW’s Carsten Helbing, who are focusing on the development of scalable EV platforms that can cater to everything from compact cars to luxury models.
Members and engineers from both companies based in Palo Alto, CA, are working on the project, and plans are already underway for the addition of more sites across the U.S. and Europe.
Image Credit: Shutterstock/Rivian
