Sign up for our popular daily email to catch all the latest EV news!
Rivian Automotive and Volkswagen Group have announced the launch of a new joint venture, Rivian and VW Group Technology, LLC, to enhance the development of electric vehicle (EV) platforms. With an investment of up to $5.8 billion, the joint venture aims to leverage both companies’ strengths in software and electric architectures, accelerating the future of EVs globally. The venture is expected to begin operations on November 13.
Key Highlights of the Joint Venture:
- Joint venture to be co-led by Wassym Bensaid (Rivian) and Carsten Helbing (Volkswagen Group).
- Initial investment of $1.3 billion from Volkswagen Group for a 50% stake and background IP licenses.
- Development teams will be based in Palo Alto, California, with expansion sites planned in North America and Europe.
- Initial drivable demonstrator vehicle successfully developed within twelve weeks, showcasing collaborative potential.
- Expected to support the launch of Rivian’s R2 in 2026 and Volkswagen’s EV models in 2027.
Rivian and Volkswagen Group aim to capitalize on their complementary expertise to bring next-generation electrical architecture and software technologies to market. The combined efforts are expected to reduce development costs while scaling new technologies at an accelerated pace, covering a wide range of vehicle segments, including subcompact cars. By utilizing Rivian’s industry-leading software and Volkswagen Group’s vehicle platform expertise, the companies intend to strengthen their positions in the competitive EV market.
The joint venture will be led by Wassym Bensaid of Rivian and Carsten Helbing of Volkswagen Group, with engineers from both companies combining forces. Their initial base will be in Palo Alto, California, while plans are underway to establish three additional sites across North America and Europe. The JV’s goal is to offer customers the best technological solutions while focusing on cost efficiencies to make EVs accessible to a broader audience.
Volkswagen Group CEO Oliver Blume highlighted the strategic importance of this partnership, stating: “The partnership with Rivian is the next logical step in our software strategy. With its implementation, we will strengthen our global competitive and technological position. Today’s launch of the joint venture demonstrates the potential we want to leverage together in the coming years.”
Rivian CEO RJ Scaringe shared similar enthusiasm: “Today’s finalization 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.”
The JV will work with Rivian’s electrical architecture and software technology stack, setting the groundwork for Rivian’s R2 launch in 2026 and Volkswagen’s first EV models expected in 2027. The companies intend to evolve a modular and flexible state-of-the-art electrical architecture for a wide range of vehicle segments and international markets. With over-the-air updates (OTA) capabilities, customers will benefit from regular software enhancements, increasing vehicle value throughout its lifecycle.
Teams from both Rivian and Volkswagen have already demonstrated success by developing an initial drivable demonstrator vehicle within just 12 weeks. This prototype, which utilizes Rivian’s zonal hardware design and integrated technology, highlights the collaborative potential between a new OEM and a legacy automaker.
Carsten Helbing, designated co-CEO of the joint venture, expressed optimism about the early success, saying, “We have made a successful start… This has laid the foundation for our future success.” Wassym Bensaid echoed this, emphasizing the goal of speeding up innovation, increasing scale, and lowering EV costs for millions of people.
Volkswagen Group plans to invest up to $5.8 billion in the joint venture by 2027, with the initial phase involving a $1 billion investment through a convertible note. Subsequent investments will be tied to defined operational, technical, and financial milestones. The joint venture will function independently, with both companies looking to strengthen R&D efficiency and achieve cost reductions.
Through this collaboration, Rivian and Volkswagen Group are set to transform EV development, focusing on scalability, efficiency, and consumer benefits. The new joint venture not only showcases innovation but also aims to bring high-quality, advanced EV solutions to a global audience.
Sign up for our popular daily email to catch all the latest EV news!
