Rivian and Volkswagen Begin Joint Venture To Advance EV Technology

Electric vehicle maker Rivian is getting even more money from German carmaker Volkswagen Group. The two companies are working together to advance EV technology through a joint venture now worth $5.8 billion.

Earlier this year, Volkswagen announced it was investing $5 billion in a partnership with Rivian. However, according to a recent press release, the deal has been revised, with the Jetta-maker bringing another $800 million to the table.

Volkswagen’s investment includes $1.3 billion for intellectual property as well as an equity stake in Rivian. Another $3.5 billion will be for future equity, notes, and debt. The other $1 billion investment is tied to convertible notes.

“The partnership with Rivian is the next logical step in strengthening our global competitive and technological position,” stated Volkswagen Group CEO Oliver Blume.

The new venture, named Rivian and Volkswagen Group Technologies, has officially begun as of Nov. 13. Developers and engineers from both VW and Rivian will combine forces to share knowledge and technology.

The group will work toward advancing Rivian’s electrical architecture and software, which will be integrated into some of Volkswagen’s 2027 models. The Audi brand will soon follow. The partnership will also help get Rivian’s second-generation R2 models launched in the first half of 2026.

“We’re thrilled to see our technology being integrated in vehicles outside of Rivian, and we’re excited for the future,” said Rivian CEO RJ Scaringe.

Rivian and Volkswagen Needed This Joint Venture

The injection of cash could not have come at a better time for Rivian. The EV manufacturer has been slashing costs as it struggles to make a profit. Additionally, recent supplier issues hurt the development and production of its next-generation EVs, including the lower-priced R2 model.  

In the previous three-month quarter, Rivian reported a gross profit loss of $392 million. For the year, the company predicts an adjusted earnings loss between $2.83 billion and $2.88 billion. Annual production of EVs will fall between 47,000 and 49,000 units, roughly 10,000 less than previous estimates.

Volkswagen has been up against its own problems lately. Last month, it made the difficult decision to close three factories in its home country of Germany. The closings also include cutting thousands of jobs.

VW said the closings and layoffs are part of a necessary plan to reorganize and slow the erosion of its market share. Increased competition from China as well as a lack of demand for Volkswagen models in Europe have been hurting the company’s bottom line.