The deal represents a significant validation of Rivian's EVs and an acknowledgment by VW that it is playing catchup in the global race.
Share on email Volkswagen Group has agreed to invest $5 billion in EV startup Rivian in a deal that also involves the creation of a joint venture allowing VW to userepresents a significant validation of Rivian's EVs and an acknowledgment by VW that it is playing catchup in the global race to electrify.VW said Tuesday it will initially invest $1 billion in Rivian through an unsecured convertible note that will convert into Rivian's common stock.
The rest of the investment includes a $1 billion purchase of Rivian's common stock in 2025 and again in 2026, plus a $2 billion investment in the JV.The JV will focus on the development of "next-generation electrical architecture and best-in-class software technology" that both companies will use to produce their own vehicles separately.
"Rivian plans to contribute its electrical architecture expertise and is expected to license existing intellectual property rights to the joint venture," the companies said in a statement.Is Volkswagen targeting an acquisition of Rivian?Share on linkedin
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