Economic news
Volkswagen to invest up to $5 billion in EV maker Rivian as part of tech joint venture
2024.06.25 16:27
SAN FRANCISCO (Reuters) -German automaker Volkswagen (ETR:) Group will invest up to $5 billion in U.S. electric-vehicle maker Rivian (NASDAQ:) as part of a new, equally controlled joint venture to share EV architecture and software, the companies said on Tuesday.
Shares in Rivian jumped 22% in after-hours trading.
The partnership will help Volkswagen accelerate its plans to develop software-defined vehicles (SDV), with Rivian licensing its existing intellectual property rights to the joint venture.
While EV startups have been grappling with a slowdown in demand amid high interest rates and dwindling cash, traditional automakers have struggled to build battery-powered vehicles and advanced software.
