Rivian and Volkswagen Announce Joint Venture for Next-Generation Electrical Architecture
The Rivian Automotive and Volkswagen Group have announced a joint venture to develop next-generation electrical architecture and software technology. This collaboration will enhance the development of new Rivian models and Volkswagen's offerings.
The partnership aims to accelerate software development for new Rivian models, reduce costs, and boost global innovation. Rivian's zonal hardware design and integrated technology platform will be the foundation for future software-defined vehicle (SDV) development. Rivian will contribute its expertise and license its intellectual property rights to the JV.
Vehicles benefiting from this technology, including new Rivian models, are expected in the second half of the decade. In the short term, the JV will allow Volkswagen to use Rivian's existing electrical architecture and software platform, advancing Volkswagen's SDV plans. Each company will continue to operate their vehicle businesses independently.
Oliver Blume, CEO of Volkswagen Group, highlighted the benefits of the partnership for new Rivian models, including faster and cost-effective technology solutions, enhancing their competitiveness.
RJ Scaringe, Founder and CEO of Rivian, emphasized that this partnership will expand the reach of Rivian's technology and secure capital for growth. This collaboration aligns with Rivian's mission to transition away from fossil fuels and develop new Rivian models.
Volkswagen plans a $5 billion investment in Rivian, starting with an initial $1 billion convertible note. An additional $4 billion investment is planned to support the development of new Rivian models.
The JV formation is expected in the fourth quarter of 2024, pending agreements and regulatory approvals. Lazard is the lead financial advisor, with BDT & MSD Partners advising Rivian on the new Rivian models.
For more information on new Rivian models, visit the Rivian R3 release date. For other new electric vehicles, see our overview about new electric cars.
Source: Rivian
