Volkswagen Group’s collaboration with Rivian has reached a significant milestone with the completion of winter testing for the VW ID EVERY1, the first vehicle to feature Rivian’s software and electrical architecture. This achievement not only moves the joint venture closer to delivering the vehicle to customers but also triggers an additional $1 billion investment from Volkswagen Group into Rivian.
Of the total investment, $750 million will be in the form of equity, while the remaining $250 million will be either equity or convertible debt, based on the prototypes provided by Volkswagen Group for testing, according to details shared by the companies.
Having already committed over $3 billion to Rivian as part of the joint venture, Volkswagen Group plans to extend further support by offering Rivian up to $1 billion in borrowing capacity starting in October. Additionally, Rivian stands to receive an additional $460 million equity investment from Volkswagen Group following the sale of the first vehicle utilizing the joint venture’s technology. The overall value of the deal could potentially reach $5.8 billion for Rivian.
The successful completion of winter testing comes ahead of Rivian’s upcoming launch of the R2 SUV, a key product in the company’s lineup, according to founder and CEO RJ Scaringe. Rivian aims to leverage this significant investment to drive growth and innovation in the electric vehicle market.
Source: TechCrunch