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Volkswagen Investing Up To $5 Billion In Rivian As The Carmakers Plan Software Venture

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Rivian News

Volkswagen,Electric Vehicles,California

Alan Ohnsman is a Forbes senior editor who covers cleantech and advanced transportation. He joined Forbes in 2016 and works in Los Angeles. He co-authors the Current Climate newsletter, writes about promising clean energy developments and has covered Tesla since 2006, when he was with Bloomberg News. He has a graduate degree in journalism and a B.

A surprise partnership between the young California EV maker and a global auto giant could position both to better compete with Tesla and Chinese rivals.Upstart electric vehicle maker Rivian said Volkswagen is investing up to $5 billion in the electric vehicle maker and that the two companies are forming a joint venture to develop an automotive software platform based on Rivian technology.

“Key for these types of collaborative relationships to work in our view is that there's mutual benefit to both sides,” said RJ Scaringe, Rivian’s founder and CEO.

Volkswagen’s initial $1 billion investment is being made through a convertible note offering. An additional investment of up to $2 billion in Rivian’s stock is to take place in two portions of $1 billion each in 2025 and 2026, the companies said. Another $2 billion will come in the form of a cash payment when the new venture company begins operating and a loan in 2026.

Source: Energy Industry News (energyindustrynews.net)

Volkswagen Electric Vehicles California Software Autonomous Germany

 

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