Rivian Automotive and Volkswagen finalize their major EV partnership

Rivian Automotive (NASDAQ:RIVN) and Volkswagen Group (OTCPK:VLKAF) (OTCPK:VWAGY) formally announced their transaction agreement to create their new joint venture after tipping off a major partnership earlier in the year.

The name of the joint venture is Rivian and Volkswagen Group Technologies, and it was formed with a total deal size of up to $5.8 billion. Through the joint venture, the companies plan to bring next-generation electrical architecture and best-in-class software technology for both companies, future electric vehicles, covering all relevant vehicle segments, including subcompact cars.

The joint venture will be headed by Wassym Bensaid (Rivian) and Carsten Helbing (Volkswagen Group). The JV will aim to use the existing Rivian electrical architecture and software technology stack, enabling the launch of Rivian’s R2 in the first half of 2026 and support the expected launch of the first models from the Volkswagen Group as early as 2027.

Developers and software engineers from both companies will join the joint venture. Teams will be based in Palo Alto, California initially, and three other sites are in development in North America and Europe.

The stated goal of the JV is to be able to offer customers the best technological solution as early as possible.

“Today’s finalization of our joint venture with Volkswagen Group marks an important step forward in helping transition the world to electric vehicles,” highlighted Rivian (RIVN) CEO RJ Scaringe. “Rivian will continue to stay focused on creating best in class products and services that benefit our customers, helping to drive EV adoption,” he added.

Shares of Rivian Automotive (RIVN) moved up 4.8% in postmarket trading on Tuesday.