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Volkswagen and U.S. electric vehicle maker Rivian have announced a strategic partnership and the creation of a joint venture to develop new electric cars. Volkswagen’s total investment will amount to $5.8 billion, including $1 billion in the form of a convertible note and up to $3.5 billion in equity for the future joint venture.

The joint venture will leverage Rivian’s technologies and software platforms, including solutions aimed at producing an affordable electric vehicle priced around $21,500. New models based on this platform are expected to be added to Volkswagen’s future lineup.

Both sides expect the collaboration to help Volkswagen accelerate the development of its electric models, while Rivian will gain the opportunity to scale production and strengthen its market position. The possibility of licensing the joint venture’s technologies to other automakers is also under consideration.

Additionally, Volkswagen Group’s Audi division will invest $1.3 billion in Rivian’s intellectual property and equity stake, underscoring the group’s long-term commitment to the electric vehicle sector.

ORIENT

Photo: www.rivianwave.com