Rivian and Volkswagen announce partnership boost to $5.8bn
Volkswagen has extended its investment in EV maker Rivian to a total of $5.8 billion.
The two companies announced in July that VW would put £5 billion into the loss-making American car maker as it looks to expand its model range and challenge Tesla.
It has now boosted that investment by 16% as the two sides look to share EV technology across a range of Rivian and VW models.
The two firms said the deal would allow the joint venture to bring next-generation EV architecture and best-in-class software to both companies’ future electric vehicles. They also hinted at smaller models, noting the deal would provide tech for ‘all relevant vehicle segments, including subcompact cars’.
Rivian currently only builds the R1T pick-up and R1S seven-seat SUV but announced in March plans for two smaller SUV models – the R2 and R3. Volkswagen plans to use the same vehicle architecture to underpin the revived US-only Scout brand, which is due to launch in 2027.
RJ Scaringe, founder and CEO of Rivian, said: “Today’s finalisation 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.”
The Rivian R2 is due to launch in 2027 and is expected to come to Europe. Pitched as a rival to the Tesla Model Y, Volkswagen ID.4 and BMW iX3, it will come with two battery and three motor choices. The most efficient single-motor version will return more than 300 miles of range, while a two-motor variant will offer all-wheel drive and a three-motor version will go from 0-60mph in less than three seconds.
