Rivian Automotive and Volkswagen Group announced they are joining forces to create an electric architecture and software for the next generation of electric vehicles.
The joint venture announced on Tuesday will all the companies to work together to create Software Defined Vehicles (SDV). The partnership will develop future electric vehicles for both companies in all relevant vehicle segments including subcompact cars. Expected to begin on Nov. 13, the joint venter uses each companies’ strengths – Rivian’s industry-leading software and electrical hardware technology, and Volkswagen Group’s global scale and industry-leading vehicle platform competencies.
“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,” Oliver Blume, CEO of Volkswagen Group, said. “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.”
Co-led by Wassym Bensaid (Rivian) and Carsten Helbing (Volkswagen Group), the joint venture deal is expected to cost up to $5.8 billion and will be known as Rivian and Volkswagen Group Technologies. Developers and software engineers from both companies will work together in Palo Alto, California initially, while three other sites are in development. The joint venture will allow the companies to reduce development costs and scale new technology more quickly, officials said. The JV will use Rivian’s existing electrical architecture and software technology. The companies expect that Rivian’s R2 will launch in 2026, and the first models from the Volkswagen Group will launch in 2027
“Today’s finalization of our joint venture with Volkswagen Group marks an important step forward in helping transition the world to electric vehicles,” RJ Scaringe, Founder and CEO of Rivian, said. “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.”