Rivian & Volkswagen Group Announce the Launch of Technology Joint Venture

Rivian Automotive and Volkswagen Group have officially launched a new joint venture (JV) called Rivian and Volkswagen Group Technologies. It  will start with a total deal size of up to $5.8 billion. 

Through this JV, the companies plan to bring next-generation electrical architecture and software technology for both companies’ future electric vehicles (EVs), covering all relevant vehicle segments, including subcompact cars.

The JV will include Rivian’s software and electrical hardware technology as well as Volkswagen's global scale and vehicle platform competencies.

It will be headed by Wassym Bensaid (Rivian) and Carsten Helbing (Volkswagen Group).

Developers and software engineers from both companies will join the JV.

Teams will be based in Palo Alto, California initially, and three other sites are in development in North America and Europe. 

The two companies announced plans to launch the JV in June, 2024.

RJ Scaringe, Founder and CEO of Rivian, says: “Today’s finalization of our joint venture with Volkswagen Group marks an important step forward in helping transition the world to electric vehicles. We’re thrilled to see our technology being integrated in vehicles outside of Rivian, and we’re excited for the future. Rivian will continue to stay focused on creating best in class products and services that benefit our customers, helping to drive EV adoption.”

Oliver Blume, CEO of Volkswagen Group, adds: “The partnership with Rivian is the next logical step in our software strategy. With its implementation, we will strengthen our global competitive and technological position. Today’s launch of the joint venture demonstrates the potential we want to leverage together in the coming years. We have a clear plan to offer our customers the best products and digital experiences at attractive prices through state-of-the-art development processes, innovative technological approaches, and a competitive cost base driven by synergies.”

Rivian vehicles are built in the United States and are sold directly to consumer and commercial customers.