Volkswagen is considering ways to expand its collaboration with U.S. electric vehicle maker Rivian, CEO Herbert Diess said in an interview with Spiegel magazine, published on Friday.
Following the establishment of their joint venture, “Rivian and VW Group Technology, LLC,” in November, Volkswagen is already looking to deepen the partnership with the electric vehicle startup. Diess remarked, “The Volkswagen Group offers great opportunities for a small brand like Rivian,” adding that they are exploring possibilities such as “sharing modules and bundling purchasing volumes.”
Volkswagen has committed to investing up to $5.8 billion in the collaboration. Rivian CEO RJ Scaringe highlighted the significance of the partnership, stating, “It’s a meaningful financial opportunity,” underscoring the mutual benefits of the deal.
Currently, the partnership focuses primarily on software, with Rivian leveraging Volkswagen’s expertise to develop a new electric vehicle architecture designed for software-defined vehicles (SDVs). The architecture aims to streamline production and reduce costs. According to the report, a new ultra-luxury electric Porsche SUV, codenamed “K1,” and an electric successor to the Golf will be among the first models to feature the new platform.
The next steps for the partnership could include a joint purchasing strategy to further consolidate the alliance. Additionally, Audi, Porsche, and Volkswagen’s upcoming Scout brand are set to utilize the new technology. Scout, which will focus on off-road electric SUVs and pickups, plans to begin production in 2027 at Volkswagen’s new plant in South Carolina.
This announcement comes just after Rivian closed a loan agreement with the U.S. Department of Energy (DOE) for up to $6.6 billion in funding for its new electric vehicle manufacturing facility in Georgia. The new plant will focus on Rivian’s R2 and R3 electric models, which will also benefit from the ongoing Volkswagen partnership.