Volkswagen Group and Rivian have officially embarked on a new joint venture to develop the EVs of the future.

The first VW Group models from the tie-up are expected as early as 2027

The agreement was first announced this summer and will see the global car giant and US electric vehicle maker collaborate in a mission to create the electric architecture and software for next-generation software-defined vehicle (SDV) platforms that will “help accelerate the world’s transition to electrification”.

Volkswagen initially pledged an investment of up to $5bn (£3.94bn / €4.7bn) but has now said it plans to invest up to $5.8bn (£4.6bn / €5.5bn).

The JV, known as Rivian and VW Group Technology LLC, will be headed up by co-chief executive officers Wassym Bensaid, Rivian’s chief software officer, and Carsten Helbing, VW’s chief technology officer.

The joint venture will initially be based in Palo Alto, California, while three other sites are in development in North America and Europe.

The collaboration will aim to use the existing Rivian electrical architecture and software technology stack, enabling the launch of Rivian’s R2 midsize SUV in the first half of 2026 and supporting the expected launch of the first models from the Volkswagen Group as early as 2027. Vehicle types will span a wide range of price points and international markets, paving the way for “new generations of high-volume vehicles that are fully capable of advanced automated driving functions and can integrate over-the-air updates (OTA) and upgrades”.

L-R: Oliver Blume, CEO Volkswagen Group; Carsten Helbing and Wassym Bensaid, designated future co-CEOs of the joint venture; and RJ Scaringe, founder and CEO of Rivian

Teams from Rivian and Volkswagen Group have already demonstrated the potential of their collaboration with an initial drivable demonstrator vehicle.

A Volkswagen Group vehicle has been retrofitted to run on Rivian’s in-market zonal hardware design and integrated technology platform.

The duo said the tie-up would combine their complementary expertise in terms of Rivian’s software and electrical hardware technology as well as the VW Group’s global scale and vehicle platform competencies.

The collaboration will cut development costs and scale new technologies more quickly, delivering customers the best technological solution as early as possible.

Wassym Bensaid, co-CEO of the joint venture, said: “The aim of the joint venture is to speed up innovation, increase scale and lower the cost of owning an EV for millions of people around the world. I’m hugely impressed by the work done already.

“While the demonstrator vehicle only scratches the surface of what is possible, it’s incredibly exciting to see what is possible when a new OEM and a legacy automaker work closely together.”