Rivian, an electric vehicle (EV) startup based in the United States, and Volkswagen Group, a German automaker, have announced a partnership to create vehicle software. The joint venture will see Volkswagen invest $5 billion into Rivian over the next few years. The first investment of $1 billion was made immediately. Both companies plan to launch new vehicles utilizing the joint venture's technologies before 2030.
Rivian's fundamental vehicle software design is expected to provide the basis for the new company's software. The technologies designed by Rivian will include both user-interface software and deeper vehicle software that interacts with things like motors. Rivian will also contribute its electrical architecture expertise and license existing intellectual property rights to the joint venture.
Volkswagen aims to accelerate its own EV development through the use of Rivian's technology. The companies could potentially cooperate on vehicles in the future, but for now, they will just work together on vehicle software and computer systems.
The idea for the joint venture first arose when Volkswagen CEO Oliver Blume and Rivian CEO RJ Scaringe were talking at Porsche's Experience Center in Atlanta. The two automakers announced the partnership on June 25, 2024.
Rivian has been selling its electric vehicles, the R1T pickup and the R1S SUV, for several years. Volkswagen currently offers electric vehicles such as the ID.4 SUV and plans to roll out electric trucks and SUVs under the Scout brand in the future.
The joint venture does not include anything related to battery technologies, vehicle propulsion platforms, high voltage systems or autonomy and electrical hardware. The closing of the joint venture is expected in the fourth quarter of 2024.