According to recent Bloomberg and Businesswire publications, Volkswagen will be investing $5 billion USD to form a joint venture with Rivian. Rivian stock has also rallied an astounding 50% in the hours since the announcement.
$5 Billion Stake
Of the $5 billion being invested, $1 billion will be invested immediately in Rivian, and the remaining $4 billion will be invested over time. That initial $1 billion will be invested in the company by the end of 2024, pending regulatory approval. The remaining $4 billion could be a fair while out, pending the formation of the joint venture in the fourth financial quarter of 2024.
The new joint venture will be “equally controlled and owned”. This is at a critical juncture for Rivian, who has recently debuted their R2 and R3 platforms, as well as bringing a much-appreciated revamp for the R1 platform.
CEO of Volkswagen, Oliver Blume:
“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. We are also acting in the best interest of our strong brands, which will inspire with their iconic products. The partnership fits seamlessly with our existing software strategy, our products, and partnerships. We are strengthening our technology profile and our competitiveness.”
Joint Venture
Part of the joint venture will be to help Rivian lower the cost per vehicle, while Rivian helps provide Volkswagen with its new Zonal control technology, which optimizes and shortens the circuit paths in a vehicle.
The Rivian platforms are also expected to serve as the foundation for future EV vehicles from Volkswagen. Rivian will be maintaining its intellectual property rights throughout the joint venture, which will provide an ongoing revenue stream for the company, as it settles into a new and faster production rhythm.
Rivian CEO, RJ Scaringe, said:
“We’re very excited to be partnering with Volkswagen Group. Since the earliest days of Rivian, we have been focused on developing highly differentiated technology, and it’s exciting that one of the world’s largest and most respected automotive companies has recognized this. 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 this partnership also is expected to help secure our capital needs for substantial growth. Rivian was created to help the world to transition away from fossil fuels through compelling products and services, and this partnership is beautifully aligned with that mission.”
Battery Venture Speculation
There is another opportunity for both companies, as Volkswagen moves to establish a 370-acre battery “giga factory” in Ontario, Canada. This could be an opportunity for Rivian and Volkswagen to continue their cooperation on battery technology, as Volkswagen intends to use the Rivian platforms for their vehicles.
Volkswagen has only recently broken ground at the site and expects the factory to produce about 90 GWh of batteries per year – or enough for roughly 1 million EVs a year. Volkswagen and the Ontario government expect that the factory should be fully functional by 2027. We could expect batteries from this Ontario factory to end up in Rivian vehicles in the future!
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Rivian is officially being recognized as a heavyweight in the world of technology. For the first time, the electric vehicle manufacturer has landed a spot on Fortune’s "America’s Most Innovative Companies" list for 2026. The honor places Rivian alongside some of the biggest names in the world, including Google parent Alphabet, which took the top spot, as well as Apple, Nvidia, and Microsoft.
According to a Rivian press release, the milestone is a "testament to the relentless curiosity and dedication" of the company's teams. Rivian noted that over the past year, they have doubled down on a vertically integrated approach, focusing on everything from foundational self-driving AI models to a streamlined zonal electronics architecture.
A Pivotal Moment for Innovation
This recognition comes at a critical time for the California-based automaker. Rivian is currently in the middle of a make-or-break launch for its R2 midsize SUV. The company is banking on the R2 to finally catapult it toward profitability by the end of this year. Unlike traditional car companies that rely on a massive web of outside suppliers, Rivian builds its own hardware and software in-house, a strategy that Fortune clearly found impressive.
“Innovation at Rivian is about being purposeful, creative and flexible,” the company stated. “This recognition from Fortune reflects our commitment to solving complex problems that make a real-world impact, ensuring that every software update and hardware refinement brings us closer to our mission of keeping the world adventurous forever.” Rivian is even set to license its software and electronic architecture to other automakers, with Audi first in line.
The Road Ahead: R2 and Beyond
The innovation Fortune is celebrating is most visible in the upcoming R2 lineup. Rivian is preparing to send out the first $57,990 R2 Performance units with a special Launch Package later this spring. This will be followed by the R2 Premium and the R2 Standard Long Range. The most anticipated version, the $45,000 R2 Standard, is expected to arrive in late 2027.
By designing the vehicle, the computer platform, and the software stack together, Rivian is creating a product that can improve over time through over-the-air updates. This "software-defined" approach is exactly why they are now standing alongside tech giants like Apple and Google on Fortune's list.
While the EV market has seen its fair share of ups and downs, Rivian’s focus on high-end tech and a unique "adventure" brand identity seems to be paying off in terms of reputation. As the first R2 units start rolling off the production line in just a few months, the company will have to prove that its innovative spirit can translate into mass-market success.
Rivian is making sure that owning its upcoming R2 SUV feels like a constant scavenger hunt. While most car companies focus on panel gaps and seat stitching, Rivian’s design team has gone above and beyond, spending a surprising amount of time hiding "surprise and delight" features all over the vehicle to keep owners entertained during charging stops.
In a recent video interview, Rivian chief designer Jeff Hammoud walked through several hidden gems baked into the R2’s glass and bodywork. Among the most charming discoveries are a tiny Gear Guard Gary face on the windshield and a miniature rock climber ascending one of the rear windows.
Subtle Details for the Observant Owner
The "Gear Guard" character is Rivian’s quirky security mascot, and on the R2, he makes a very subtle appearance in the frit — the black dotted pattern along the edge of the windshield. Hammoud noted that this is one of his favorite additions because it is so easy to miss. "That one's one of my favorite ones ‘cause it's so subtle. That’s Gear Guard making a little appearance there. So, that's his smiley face, his eyes, and his mouth," Hammoud said.
If you look toward the rear of the vehicle, you might also spot a tiny decal of a mountain climber scaling the side window. Hammoud pointed this out as another nod to the brand's outdoorsy "adventure" identity.
While the easter eggs are fun, the R2 itself is a serious path to profitability for Rivian. The company is currently finalizing the rollout for the different trims of the midsize SUV:
R2 Performance ($57,990): This is the first model off the line, slated for delivery later this spring. It features a 3.6-second 0–60 mph time, and the first orders will ship with an exclusive Launch Package.
R2 Premium ($53,990): Expected to follow in late 2026.
R2 Standard Long Range ($48,490): Coming in early 2027 as the range leader of the pack.
R2 Standard ($45,000): The much-anticipated, high-volume base model that’s expected in late 2027.
For a deep dive into how these versions stack up, you can check out our full R2 trim comparison.
Hammoud emphasized that he didn't want to "give them all away," suggesting that there are still plenty of hidden easter eggs waiting to be discovered under the hood of the R2 and throughout the cabin. As the first Launch Edition units start reaching customers in just a few months, we’ll likely see even more of these tiny details surface on social media. It is clear that Rivian wants the R2 to be a vehicle you keep exploring long after the new-car smell has faded.
