Rep. Mariannette Miller-Meeks, Republican of Iowa, talks to “The Evening Edit” about lawmakers’ concerns about China profiting from EVs.
German automaker Volkswagen will invest up to $5 billion in electric vehicle startup Rivian, the companies announced Tuesday.
The two companies said they aim to develop “next-generation electric architectures and best-in-class software technologies” for EVs through the planned joint venture.
Volkswagen and Rivian said they ultimately intend to incorporate technology from the joint venture into new vehicles the companies plan to launch “later this decade.”
Rivian unveils two new EV SUV lines, one of which is a surprise
As part of the partnership, Volkswagen will inject $1 billion into Rivian through unsecured convertible notes this year, after which the companies plan to inject $4 billion by 2026.
Electric-vehicle startup Rivian Automotive Inc. is suing a major seating supplier, warning that a pricing dispute could affect production of an electric van ordered by Amazon.com Inc. (Photo by Justin Sullivan/Getty Images) (Photo by Justin Sullivan/Getty Images/Getty Images)
The joint venture, which will be equally owned and controlled by Volkswagen and Rivian, is expected to be fully established in the fourth quarter of this year, the companies announced.
On November 10, 2022, a Volkswagen emblem was spotted being installed on a car in Krakow, Poland. (Jakub Porzycki/NurPhoto via Getty Images / Getty Images)
“We expect this partnership will not only enable us to make our software and associated zone architecture available to a broader market through the Volkswagen Group’s global reach, but also secure the capital needed for significant growth,” Rivian CEO RJ Scaringe said.
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Rivian’s current lineup includes the R1T pickup truck and the R1S SUV, with the R2 and R3 platforms in development, and the startup is working on a variety of measures to cut costs and raise capital in order to bring the new platforms to market.
The newly redesigned Rivian R1S. (Courtesy of Rivian/Fox News)
Meanwhile, Volkswagen Group CEO Oliver Blume said the joint venture would “strengthen our technological capabilities and competitiveness.”
Volkswagen’s stand at the 1st China International Import Expo (CIIE 2018) held in Shanghai, China on November 8, 2018. (Toyo Images via Reuters Connect/Reuters Photos)
The German automaker will benefit from access to Rivian’s “existing electric architecture and software platform” to “accelerate” its software-defined vehicles and other plans.
Check it out: Rivian unveils redesigned all-electric SUV and pickup truck
Rivian shares rose more than 25% during midday trading on Wednesday.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| Vwagie | Volkswagen AG | 12 | -0.20 | -1.64% |
| Riven | Rivian Automotive Corp. | 14.84 | +2.88 | +24.08% |
The company told investors in May that it expected to produce 57,000 vehicles this year.
