Rivian and Volkswagen are forming a joint venture to create next-generation electrical architecture and “best-in-class software technology”. The partnership means the pair can combine their strengths and reduce per-vehicle costs by increasing scale and accelerating innovation.
Rivian’s hardware design and integrated technology platform are expected to form the basis of Software Defined Vehicle (SDV) development. That tech will drive vehicles from both sides of the JV.
Rivian said it will contribute its electrical architecture expertise and existing intellectual property rights to the joint venture. Both companies will launch vehicles with the JV technology towards the end of this decade.
The JV will allow Volkswagen to utilise Rivian’s existing electrical architecture and software platform.
“We’re very excited to be partnering with Volkswagen Group” said Rivian founder and CEO Robert Scaringe.
“Not only is this partnership expected to bring our software and associated zonal architecture to an even broader market through Volkswagen Group’s global reach but it is also expected to help secure our capital needs for substantial growth.”
To that end, Volkswagen Group is making a $US5 billion investment in Rivian.
Volkswagen Group chief executive officer Oliver Blume commented “Our customers benefit from the targeted partnership with Rivian to create a leading technology architecture. Through our cooperation, we will bring the best solutions to our vehicles faster and at lower cost.
“The partnership fits seamlessly with our existing software strategy and our products. We are strengthening our technology profile and our competitiveness.”
There has been significant preliminary work done to confirm that Rivian’s electrical architecture and software are compatible with Volkswagen Group’s vehicles.
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