Volkswagen has deepened its investment in U.S. electric vehicle startup Rivian, raising its commitment by 16% to a total of $5.8 billion as part of a new joint venture aimed at advancing EV architecture and software for both brands. This partnership, called Rivian and VW Group Technology LLC, will develop shared electrical and software systems to power future EV models from both companies. Rivian's R2, a more affordable SUV, will be the first vehicle to use this architecture, with production starting in 2026.

This joint venture brings strategic benefits to both partners, with Volkswagen gaining access to Rivian's tech expertise to help alleviate software development issues plaguing its subsidiary, Cariad. Rivian will also use the funds to support its new factory in Georgia,US, expected to ramp up after securing a federal loan. Led by Rivian’s Chief Software Officer Wassym Bensaid and VW’s Chief Technical Engineer Carsten Helbing, the joint venture is headquartered in Palo Alto, with additional sites planned. VW models based on this shared technology could be launched as early as 2027, marking a significant milestone in the automakers' EV strategies.