VW to Pump $5 Billion Into Rivian

June 26, 2024
JV will allow a technology share.

Volkswagen (VW) says it will invest up to $5 billion in EV maker Rivian.

The deal creates a joint venture that will allow VW and the US-based EV manufacturer to share technology. It has already proven popular with investors as Rivian shares jumped by almost 50% after the announcement.

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The tie-up comes as competition intensifies between EV makers and Western countries move to impose tariffs on Chinese imports, reports BBC.com.

Under the agreement, VW said it will initially invest $1 billion in the electric truck and SUV maker, with another $4 billion to be put into the company by 2026.

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Founded in 2009, Rivian has not yet posted a quarterly profit. In the first three months of 2024 the company saw a net loss of more than $1.4 billion.

Source: BBC.com

About the Author

Frank Raczon

Raczon’s writing career spans nearly 25 years, including magazine publishing and public relations work with some of the industry’s major equipment manufacturers. He has won numerous awards in his career, including nods from the Construction Writers Association, the Association of Equipment Manufacturers, and BtoB magazine. He is responsible for the magazine's Buying Files.