Rivian-Volkswagen Joint Venture Secures $5.8 Billion Deal, VW Cars Expected as Early as 2027

• The joint venture between Rivian Automotive and Volkswagen Group has grown to a value of $5.8 billion.
• As early as 2027, the first VW models to incorporate Rivian's software and electrical architecture will be available.

The joint venture details have been released ahead of the launch on Wednesday.

The joint press release on Tuesday announced that the deal size has increased to $5.8 billion from the initial $5 billion, with the first VW models using Rivian's software and electrical architecture set to arrive as early as 2027.

The joint venture, expected to close in the fourth quarter, is named "Rivian and VW Group Technology, LLC."

In June, Rivian announced a deal and sought additional capital as it prepared to launch its redesigned models and produce new "R2" vehicles in early 2026.

RJ Scaringe, CEO of Rivian, stated that the capital from VW will fund the production of the company's smaller R2 SUVs at its Illinois plant starting in 2026, as well as the production of a midsize EV platform at a Georgia plant where construction was halted earlier this year.

VW has already invested $1 billion in the joint venture, and at closing, will invest an additional $1.3 billion as consideration for background IP licenses and a 50% equity stake.

The remaining $3.5 billion investment is expected to be in the form of equity, convertible notes, and debt, with milestones clearly defined, according to the companies.

Rivian did not immediately disclose the reason for the increase in the deal size to $5.8 billion.

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