Rivian and Volkswagen could be deepening their partnership soon, according to the CEO of the German automaker.
Rivian and Volkswagen entered into a $5.8 billion partnership last year but might be expanding the joint venture. According to Volkswagen CEO Oliver Blume, a new agreement would represent “great opportunities” for the EV startup.
In an interview with German media Spiegel, Blume hinted the new collaboration could involve “sharing modules and bundling purchasing volumes.”
Rivian’s current partnership with Volkswagen involves software. The former will develop a new electronics architecture on which Volkswagen will base some of its future EVs. The architecture will reportedly power an upcoming three-row Porsche SUV and a new electrified version of the iconic Golf. Volkswagen’s Scout brand will also develop an electric SUV and pickup truck on the platform, and both will be produced in a new $2 billion plant in South Carolina.
A joint procurement arrangement will bring the benefits of Volkswagen’s volume purchasing power to Rivian. The legacy automaker produces and sells millions of vehicles annually globally.
Rivian’s share roses significantly on the news of a potentially revised partnership. The company’s stock gained more than 5 percent but still trades below its value a year ago.
Rivian secured a conditional $6.6 billion loan from the DoE for its Georgia factory in November.
