Volkswagen has just announced an investment of 1 billion US dollars, which could go up to 5 billion, in Rivian Automotive, Inc. This strategic investment marks, at least according to Volkswagen, the start of a partnership that aims to accelerate the development and adoption of advanced electric vehicles. A joint venture could result from this agreement.
The technological future
The terms of the deal call for $1 billion initially, followed by an additional $4 billion later. Rivian says the money will help fund its operations until the launch of its next mass-market vehicle, the R2 SUV.
In exchange, Rivian will share its expertise in software development and electrical architectures, as evidenced by its recent revised R1 vehicles. It is also expected to “assign existing intellectual property rights to the joint venture,” according to a press release.
Today’s announcement marks another milestone in Volkswagen’s commitment to launch more than 20 new electric models by 2025 and invest 33 billion euros in electrification, digitalization, and autonomous technologies .
In parallel with this direct investment, the agreement adds that the two companies will consider the creation of an equally owned joint venture with Rivian. This initiative will focus on the design of a next-generation electrical/electronic (E/E) architecture, capitalizing on Rivian’s software strengths and Volkswagen’s large-scale manufacturing expertise to build scalable electrical solutions and efficient.
Rivian delighted with the association
The joint venture would provide a good window for Rivian and Volkswagen to more efficiently develop electric vehicles. This joint venture would leverage Rivian’s software expertise and Volkswagen’s experience in large-scale automobile production to develop a scalable, high-performance E/E architecture.
“Both companies aim to launch vehicles benefiting from the technology created within the joint venture in the second half of the decade,” the two companies said in a joint statement. “In the short term, the joint venture is expected to enable Volkswagen Group to use Rivian’s existing electrical architecture and software platform. »
“The ambition of the partnership is to accelerate the Volkswagen Group’s SDV plans and its transition to a pure zonal architecture,” the press release adds. “Each company will continue to operate its respective automotive businesses separately. »
This partnership is seen as a crucial milestone in Volkswagen’s transformation into a major player in sustainable mobility, at least according to Volkswagen. Additional details on this collaboration will be disclosed soon, but it is certain that this strategic alliance will generate a series of innovations and new developments for both companies.
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