Rivian Stock Soars as Joint Venture with Volkswagen Is Upsized to $5.8 Billion

Rivian Automotive Inc. and Volkswagen Group have launched their upsized joint venture, vowing to join forces to create "cutting edge" EV technology.

Shares of Rivian rose 20% in Wednesday trading. Rivian reported mixed third-quarter earnings last week.

Rivian Automotive, Inc. and the German-based car maker Volkswagen said that the deal totals $5.8 billion, which is more than when the makers first announced it back in June. The JV starts operations on Wednesday.

The JV "combines the strength of both partners to create cutting-edge software and electronics architectures and scale the electric-vehicle platforms and architectures," the companies said. "The goal is to be able to offer customers the best technological solution as early as possible."

The JV will be co-led by Wassym Bensaid, Rivian's chief software officer, and Carsten Helbing, Volkswagen Group's chief technical engineer.

"We're thrilled to see our technology being integrated in vehicles outside Rivian - this is an important enabler to help accelerate EV adoption," Rivian Chief Executive RJ Scaringe said in a statement.

"The partnership with Rivian is the next logical step in strengthening our global competitive and technological position," VW's CEO Oliver Blume said.

The companies first announced the JV, then expected at up to $4 billion, and a $1 billion investment from Volkswagen in June.

Volkswagen Group plans to invest up to $5.8 billion in Rivian and the joint venture by 2027. The initial $1 billion investment, the form of convertible notes, has already been made.

The JV's goal is to use Rivian's existing EV architecture and software technology stack to launch Rivian's next-generation EV in the first half of 2026 and support an expected launch of the first models from the Volkswagen as early as 2027, the companies said.

In just 12 weeks, the joint team developed an drivable demo EV, highlighting integration capabilities of both companies, they said.