Rivian and Volkswagen released an update to their Joint Venture, which was announced in June of this year. In the original announcement, Volkswagen promised to invest $5 billion in Rivian—$1 billion immediately and another $4 billion over time—for an equally controlled and owned joint venture.
“The partnership with Rivian is the next logical step in strengthening our global competitive and technological position.”
-- Oliver Blume, CEO of Volkswagen
The goals were to help Rivian reduce its cost per vehicle, while also helping Volkswagen with software and zonal control technology. This collaboration presents an incredible opportunity for Rivian, positioning its technology and software as the foundation for future EVs developed through the joint venture. Crucially, Rivian retains its intellectual property rights, opening up a substantial new revenue stream for the company.
JV Update
The JV has been updated with a total deal size of up to $5.8 billion now—which is an addition of another $800 million to the original proposal. Rivian and Volkswagen will send engineers to join the JV, which will be co-headed by Rivian’s Wassym Bensaid and Volkswagen’s Carsten Helbing. Both will take on the title of co-CEO at the JV.
“We’re thrilled to see our technology being integrated in vehicles outside Rivian – this is an important enabler to help accelerate EV adoption.”
-- RJ Scaringe, CEO of Rivian
The primary purpose of the JV is to start working on the electric architecture—that Zonal control—and the software for what Volkswagen calls “next-generation Software Defined Vehicles,” or SDVs. The JV will officially start on November 13th, 2024, with both companies beginning contributions to the JV on that date.
The best part? The JV focuses on more than just one market segment - it includes subcompact cars. That means a mass-market vehicle that’ll be built upon Rivian’s proven tech and software will one day be available - pushed forward by Volkswagen’s mass-market scale.
The JV will be based in Palo Alto, California, as well as some other sites in North America and Europe - for a total of up to four sites. It’ll be a chance for engineers from both companies to get together and figure out how to best leverage what both companies have to offer and build an appealing set of products.
JV Focuses
With the primary focus being on using Rivian’s pre-existing architecture and software stack, the R2 platform is a clear starting point for the JV - one of its key purposes will be to bootstrap the launch of the R2 in early 2026, and then go on to support the R3, and further Volkswagen vehicles sometime in 2027 and 2028.
Scaling Rivian’s technology will be challenging. While Rivian’s tech is modular, flexible, and highly capable, these advanced features come with a high price tag. To make vehicles that are both high-performing and affordable, the joint venture will need to focus on reducing costs without compromising on capability.
Interestingly, the JV also mentions automated driving functions - so we can probably expect Rivian’s Autonomy Platform to be present on these new vehicles as well - alongside a specific focus on OTA updates.
Rivian and Volkswagen have supposedly already built a driveable demonstrator vehicle, a Volkswagen car built to run on Rivian’s hardware and software, which sounds a lot like Scout…
We’re excited to see where this JV goes and how it helps shape Rivian, Rivian’s software platform, and the future of EVs.
