Irvine, November 13: VW and Rivian announced their joint venture of USD 5.8 billion starting November 13, 2024. The investment, which is part of a JV between Rivian and Volkswagen Group Technologies, will be completed by 2027. This comes amid German-based Volkswagen's announcement of a mass layoff round and the US-based EV firm Rivian's financial difficulties.

VW already announced to invest up to USD 5 billion in Rivian in last June as a part of a new joint venture that would focus on developing the EVs and related software for the upcoming vehicles. The collaboration aimed to target subcompact cars by 2027 and others. Now, Rivian has announced that the investment has grown 16% to USD 5.8 billion since it was first announced. Elon Musk’s Tesla and SpaceX Hold USD 1.73 Billion Worth Bitcoin in Total.

The joint venture between these two automobile companies will be called "Rivian and VW Group Technology, LLC." It will be a 50/50 split between the companies and co-led by Rivian's Chief Software Officer, Wassym Bensai, and VW's Carsten Helbing. The JW will use the companies' technologies and expertise to meet the goals.

Rivian's zonal architecture will support Rivian's R2 in 2026 and Volkswagen models by 2027. The US EV maker announced that VW already invested USD 1 billion and plans to invest more USD 1.3 billion at the launch of the JV for license and equity. Rivian also announced that the investor call will be at 5 PM EST on the launch date, November 13, 2024 (today). EV Registrations on Rise: Electric Vehicles Demand Increase During Festive Season Across All Segments, Surge 26% YoY To Reach 1.1 Million Units, Says Report.

According to a report by The Verge, once the deal is closed, Rivian will receive a USD 1 billion loan from VW, followed by USD 1.3 billion worth of shares in Rivian. The additional USD 3.5 billion will be settled over the upcoming years. The collaboration will create a new technology and help both companies scale in the highly competitive EV market.

(The above story first appeared on LatestLY on Nov 13, 2024 12:17 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).