Rivian Automotive Inc. and Volkswagen Group said the size of their deal for a joint venture called Rivian and VW Group Technology, LLC is now up to $5.8 billion, up from the initial $5 billion.
The venture will "aim to use the existing Rivian electrical architecture and software technology stack, enabling the launch of Rivian's R2 in the first half of 2026 and support the expected launch of the first models from the Volkswagen Group as early as 2027." Volkswagen already invested $1 billion in the form of a convertible note and, at the closing of the joint venture, will invest about $1.3 billion "as consideration for background IP licenses and a 50% equity stake in the joint venture." The remaining $3.5 billion is expected to come by 2027 "in the form of equity, convertible notes, and debt at future dates and based on clearly defined milestones."
The joint venture will be headed by Rivian Chief Software Officer Wassym Bensaid and VW Group Chief Technical Engineer Carsten Helbing. Teams will be based in Palo Alto, California, initially, and three other sites are in development in North America and Europe.
