Collaboration Between Rivian and Volkswagen Reveals $5.8 Billion Electrical Vehicle Technology Platform Scheme
Rivian and Volkswagen Group Collaborate to Revolutionize Electric Vehicle Technology
Rivian, the American electric vehicle (EV) manufacturer, and Volkswagen Group have joined forces to develop an advanced EV software and electrical architecture. The joint venture, named Rivian and Volkswagen Group Technologies, is valued at $5.8 billion and is set to begin operations on November 13, 2022, in Palo Alto, California.
The collaboration aims to create a next-generation, flexible platform that will control all key vehicle functions, with over-the-air update capabilities. This technology is based on Rivian’s current system, which is used in the R1T and R1S models, designed to enable hardware adjustments remotely and improve vehicle software management.
At the heart of the joint venture is a software platform shared and co-developed by VW and Rivian, enabling a unified and scalable electrical/electronic (E/E) vehicle architecture. This platform allows for over-the-air software updates with the capability to modify hardware parameters remotely, enhancing vehicle functionality post-sale.
The platform is described as flexible and modular, supporting multiple vehicle classes and price points, aligning with both companies’ EV strategies. Volkswagen’s investment, amounting to up to $5.8 billion through 2027, will finance this joint venture, focusing on software and tech development to accelerate VW’s EV transition.
The collaboration also aims to reduce costs and scale production, including the upcoming Rivian R2 SUV model and cost targets aimed at broader market competitiveness. Volkswagen manages strict intellectual property protections to prevent technology leakage, ensuring Rivian's proprietary software remains secure within the joint venture.
The joint platform will underpin Volkswagen’s upcoming models, including the fully electric ninth-generation Volkswagen Golf (ID Golf) expected around 2028, and the ID Every1 city car concept launching in 2027, which will be a more affordable EV priced around 20,000 euros.
The joint venture will have teams of engineers and developers from both companies, headed by Wassym Bensaid from Rivian and Carsten Helbing from Volkswagen. Rivian founder and CEO RJ Scaringe sees the collaboration as a significant milestone in the company's mission to accelerate electric vehicle adoption worldwide. Volkswagen Group CEO Oliver Blume views the partnership as a "natural step" in VW’s software ambitions.
The initial project took only 12 weeks, showcasing the scalability and flexibility of their combined technology. Additional R&D sites in North America and Europe are planned for the joint venture. The initial investment from Volkswagen is $1 billion in the form of convertible notes. At launch, VW will invest about $1.3 billion for intellectual property licenses and a 50% equity stake.
The joint venture aims to quickly develop and roll out technology that will shape the future of both brands' electric vehicle lineups, delivering best-in-class products and digital experiences through cutting-edge development processes and smart cost-sharing synergies. The first models under the joint venture are anticipated to hit the market as early as 2027, with the goal of supporting advanced driver assistance, over-the-air updates, and modular technology upgrades, and rolling out vehicles globally.
- The software platform, shared and co-developed by Rivian and Volkswagen, will be utilized in various automotive sectors, including electric vehicles.
- The joint venture aims to reduce costs and scale production for numerous vehicle classes, such as the upcoming Rivian R2 SUV and the ID Every1 city car.
- The collaboration between Rivian and Volkswagen Group will also focus on lifestyle products, as the technology is set to underpin Volkswagen's upcoming models like the ID Golf.
- With the joint venture's advancements in technology, both companies aim to revolutionize the industry, particularly the transportation sector, by delivering electric vehicles that offer cutting-edge digital experiences.
