Rivian Just Got a Whopping Investment from Volkswagen

• Volkswagen is starting a joint venture with BEV maker Rivian to help with next-generation, software-defined vehicles.
  

• Volkswagen is investing $1 billion into Rivian immediately, with $4 billion more planned for a later date.

• This cash injection could help Rivian as it gets set to roll out more mass-market BEVs in the coming years.

On the heels of showing off an expanded portfolio of vehicles, Rivian has just created a joint venture with Volkswagen and was on the receiving end of a $1 billion investment. This initial investment is set to kickstart the joint venture’s goal of developing its next-generation of software-defined vehicle architectures and new software technologies.

Joining this initial investment is another $4 billion that’s planned to be pushed Rivian’s way over time.

This cash injection is obviously good news for the folks at Rivian, but it might be even better news for those who are dreaming of adding the R3 or R3X to their stable. That’s not to say that the cash injection is the only benefit from a partnership with Volkswagen. According to a press release, the two automakers will work together to share manufacturing ideas, and Volkswagen will help Rivian with lowering manufacturing costs.

Of course, this obviously also benefits the folks at Volkswagen. According to the press release from VW, the German automaker is going to learn from Rivian’s Zonal electrical architecture.

Volkswagen Group boss Oliver Blume says about the partnership, “Our customers benefit from the targeted partnership with Rivian to create a leading technology architecture. Through our cooperation, we will bring the best solutions to our vehicles faster and at a lower cost. We are also acting in the best interest of our strong brands, which will inspire with their iconic products.”

With Volkswagen moving further into the battery-electric space, it never hurts for one of the world’s largest automakers to get some fresh ideas from the battery-electric-focused upstarts.

It’s hard to say how long it’s going to take this joint venture to spin up or to see what fruit it will bear, but it could be just what Rivian needs to get over its reported early growth woes. Regardless, the full $5 billion agreement is expected to make its way to Rivian by 2026, which means there’s going to be a steady stream of cash heading Rivian’s way for the next few years.

How do you think this venture will help both companies? Tell us your thoughts below.