Rivian Automotive (NASDAQ: RIVN) and Volkswagen Group (XETRA: VOW / VWO3) have announced plans to establish a joint venture (JV) with equal ownership to develop cutting-edge electrical architecture and top-tier software technology.
This collaboration aims to accelerate software development for both companies by leveraging their combined strengths, thereby reducing costs per vehicle through increased scale and faster innovation on a global scale. Rivian’s established zonal hardware design and integrated technology platform will serve as the foundation for future software-defined vehicle (SDV) development within the JV, benefiting both companies’ vehicles. Rivian will contribute its expertise in electrical architecture and is expected to license its existing intellectual property to the joint venture.
The goal is to launch vehicles featuring the new technology in the second half of the decade. In the interim, the JV will enable Volkswagen Group to utilize Rivian’s current electrical architecture and software platform, advancing Volkswagen’s transition to a pure zonal architecture. Both companies will continue to operate their respective vehicle businesses independently.
Oliver Blume, CEO of Volkswagen Group, stated: “Our customers will benefit from this strategic partnership with Rivian, which will create a leading technology architecture. By working together, we will bring the best solutions to our vehicles more quickly and at a lower cost. This collaboration aligns perfectly with our existing software strategy, products, and partnerships, enhancing our technology profile and competitiveness.
We’re thrilled to be partnering with Volkswagen Group. Since Rivian’s inception, we’ve focused on developing highly differentiated technology, and it’s exciting to see one of the world’s largest and most respected automotive companies recognize this. This partnership is expected to expand the reach of our software and zonal architecture through Volkswagen Group’s global presence and help secure the capital needed for substantial growth. Rivian was founded to aid the world’s transition away from fossil fuels with compelling products and services, and this partnership aligns perfectly with that mission
