- VW Group and Rivian collaborate on electrical architecture and software development
- First Rivian to use jointly developed systems will be R2 due in 2026
- First VW Group models will use the the systems from 2027
Volkswagen Group has decided to deepen its ties with U.S. electric vehicle startup Rivian, with the two companies announcing on Tuesday increased investment for their previously announced Rivian and VW Group Technology joint venture.
The joint venture was first announced in June with an initial investment of $5 billion, with the funding to be supplied by VW Group over a period of years and Rivian in return delivering its expertise in electrical architecture and software development.
Rivian CEO RJ Scaringe (left) and Volkswagen Group CEO Oliver Blume
On Tuesday, VW Group and Rivian announced the investment would be increased to $5.8 billion. The additional investment is the result of VW Group pulling ahead some potential future capital and changing the original deal structure, the companies said.
Currently, $1.3 billion is to be spent on software development, a further $3.5 billion is for VW Group to purchase shares in Rivian, and the remaining $1 billion is earmarked for a potential loan by VW Group to Rivian.
Rivian and Volkswagen Group electrical architecture and software stack
The joint venture, which is expected to start operations on Nov. 13, has been tasked with developing and supplying electrical architecture and software systems to both companies, with features like network hardware and software stacks that enable vehicles to be updated over the air for their full life cycle mentioned during an investor briefing.
The first vehicle to use the jointly developed systems was confirmed as Rivian’s R2 compact crossover due in 2026. VW Group said some Volkswagen models will likely be its first models to use the new systems, followed by models from Audi, and VW Group’s new Scout EV brand. During the investor briefing, VW Group CEO Oliver Blume said some sports cars could also use the systems, without providing further details.
Scout Terra and Traveler concepts
The joint venture’s initial base will be in Silicon Valley and employ around 1,000 engineers. Three additional sites spanning the U.S. and Europe are planned for the near future.
Both companies are open to further collaboration down the road in areas such as batteries, whole vehicle platforms, and joint production, but said this will need to be in addition to the announced joint venture deal.