SAN FRANCISCO — Volkswagen Group will make investments as much as $5 billion in U.S. electric-vehicle maker Rivian as a part of a brand new, equally managed three way partnership to share EV structure and software program, the businesses stated on Tuesday.
In its announcement, Rivian stated that each it and VW intention to launch automobiles “benefiting” from the JV earlier than 2030, nonetheless each corporations will proceed their present manufacturing operations individually. Extra instantly, VW will have the ability to make the most of Rivian’s present electrical and software program platforms.
“We’re very excited to be partnering with Volkswagen Group,” Rivian President RJ Scaringe stated in an emailed assertion. “For the reason that earliest days of Rivian, we have now been targeted on creating extremely differentiated know-how, and it’s thrilling that one of many world’s largest and most revered automotive corporations has acknowledged this.”
“Not solely is that this partnership anticipated to deliver our software program and related zonal structure to an excellent broader market by way of Volkswagen Group’s international attain,” Scaringe stated, “however this partnership additionally is predicted to assist safe our capital wants for substantial progress. Rivian was created to assist the world to transition away from fossil fuels by way of compelling services and products, and this partnership is fantastically aligned with that mission.”
That is thrilling! Volkswagen Group CEO Oliver Blume and I are thrilled to announce the formation of a three way partnership between our two corporations. This partnership brings Rivian’s software program and zonal electronics platform to a broader market by way of Volkswagen Group’s international attain and… pic.twitter.com/11XVNUo89J
— RJ Scaringe (@RJScaringe) June 25, 2024
A consultant of Scout Motors — VW Group’s new semi-independent electrical truck offshoot — declined to touch upon the deal. Scout broke floor on its manufacturing facility in Blythewood, South Carolina, earlier this 12 months.
Shares of Rivian surged 30% in prolonged Nasdaq commerce after the announcement, boosting the corporate’s inventory market worth by greater than $3 billion.
The funding will present Rivian — identified for its flagship R1S SUVs and R1T pickups — the funding it must develop its less-expensive and smaller R2 SUVs which are set to roll out in 2026, CEO RJ Scaringe advised Reuters.
Volkswagen will initially make investments $1 billion in Rivian and an additional $4 billion later, the businesses stated.
“Our prospects profit from the focused partnership with Rivian to create a number one know-how structure,” stated VW Group CEO Oliver Blum. “Via our cooperation, we are going to deliver the very best options to our automobiles sooner and at decrease value. We’re additionally performing in the very best curiosity of our robust manufacturers, which is able to encourage with their iconic merchandise.”
Whereas EV startups have been grappling with a slowdown in demand amid excessive rates of interest and dwindling money, conventional automakers have struggled to construct battery-powered automobiles and superior software program.
Accommodates reporting by Reuters.
