Volkswagen is investing billions for Rivian: revolution in e-mobility!

Volkswagen is investing billions for Rivian: revolution in e-mobility!

Volkswagen is increasing its investment in US electric vehicle maker Rivian to solve its own software problems. The company recently announced it would invest an additional $1 billion in Rivian after meeting financial requirements. With this additional investment, Volkswagen's total investment could rise to up to $5.8 billion. Of this, $3.5 billion is attributable to shares in the company, while the rest goes to a joint venture that is intended to advance the development of new technologies. Volkswagen currently holds 8.6 percent of the shares in Rivian and could soon become the largest individual shareholder, which is currently Amazon. IT Boltwise reports about these developments.

The collaboration between Volkswagen and Rivian aims to give Volkswagen access to Rivian's innovative electronics architecture. This architecture could not only significantly increase efficiency, but also reduce the need for control devices. With this technology, Volkswagen wants to better overcome the challenges caused by software problems. These problems have already led to delays in model launches in the past.

New joint venture and future models

Part of the investment will flow into the Rivian Volkswagen Technologies joint venture, which is scheduled to be founded at the end of 2024. This joint venture will be dedicated to the development of new electronic architectures and software solutions for electric cars. The first application of this technology is expected in the VW model ID.1, a small electric car that is scheduled to hit the market in 2027 and whose production will take place at the VW plant in Palmela, Portugal. The target purchase price for the ID.1 is around 20,000 euros. n-tv informed that the ID.1 will be equipped with Rivian's technology and will therefore play an important role in Volkswagen's electric strategy.

Although Rivian has posted gross profit in the last two quarters, the company remains in the red. However, the net loss was reduced from $1.445 billion to $541 million. The next $1 billion payment from Wolfsburg is scheduled for mid-2026, depending on progress on technological milestones. A final payment of $500 million is set for 2027, once the first VW with the new technology goes into series production.