German automaker Volkswagen Group announced a $5 billion investment in U.S. electric-vehicle maker Rivian as part of a new joint venture to share EV architecture and software. Rivian’s shares surged 50% after the announcement, potentially increasing its market value by $6 billion.
The investment will aid Rivian in developing its R2 SUVs, set for early 2026, and R3 crossovers. This partnership will help Rivian reduce operating costs and achieve positive cash flow. Volkswagen aims to address its software challenges through this venture.
Volkswagen will invest $1 billion initially, with further investments totaling $2 billion contingent on Rivian meeting certain milestones, and provide a $1 billion loan in 2026. The joint venture will also benefit Volkswagen’s off-road EV brand Scout.
This collaboration strengthens Rivian’s position and expands Volkswagen’s EV offerings in North America.