IRVINE, CA—Rivian Automotive and Volkswagen Group have formed a joint venture that will develop next-generation electrical architectures and software for electric vehicles. A new entity called Rivian and Volkswagen Group Technologies will be based in Palo Alto, CA. Volkswagen plans to invest up to $5.8 billion in Rivian and the joint venture by 2027.
By combining their complementary expertise, the two companies plan to reduce development costs and scale new technologies more quickly. One goal is to use the existing Rivian electrical architecture and software technology stack, enabling the launch of Rivian’s R2 in the first half of 2026, and supporting new VW models currently in development.
The joint venture will evolve the modular and flexible state-of-the-art architecture. It will scale the technology across a wide range of price points and international markets, paving the way for new generations of high-volume vehicles that are fully capable of advanced automated driving functions and can integrate over-the-air updates and upgrades.
“The partnership with Rivian is the next logical step in our software strategy,” says Oliver Blume, CEO of Volkswagen Group. “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. We have a clear plan to offer our customers the best products and digital experiences at attractive prices through state-of-the-art development processes, innovative technological approaches and a competitive cost base driven by synergies.”
“Today’s finalization of our joint venture with Volkswagen Group marks an important step forward in helping transition the world to electric vehicles,” adds R.J. Scaringe, CEO of Rivian. “We’re thrilled to see our technology being integrated in vehicles outside of Rivian, and we’re excited for the future. [We] will continue to stay focused on creating best-in-class products and services that benefit our customers, helping to drive EV adoption.”
