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 and Volkswagen released an update to their Joint Venture, which was announced in June of this year. In the original announcement, Volkswagen promised to invest $5 billion in Rivian—$1 billion immediately and another $4 billion over time—for an equally controlled and owned joint venture.
“The partnership with Rivian is the next logical step in strengthening our global competitive and technological position.”
-- Oliver Blume, CEO of Volkswagen
The goals were to help Rivian reduce its cost per vehicle, while also helping Volkswagen with software and zonal control technology. This collaboration presents an incredible opportunity for Rivian, positioning its technology and software as the foundation for future EVs developed through the joint venture. Crucially, Rivian retains its intellectual property rights, opening up a substantial new revenue stream for the company.
JV Update
The JV has been updated with a total deal size of up to $5.8 billion now—which is an addition of another $800 million to the original proposal. Rivian and Volkswagen will send engineers to join the JV, which will be co-headed by Rivian’s Wassym Bensaid and Volkswagen’s Carsten Helbing. Both will take on the title of co-CEO at the JV.
“We’re thrilled to see our technology being integrated in vehicles outside Rivian – this is an important enabler to help accelerate EV adoption.”
-- RJ Scaringe, CEO of Rivian
The primary purpose of the JV is to start working on the electric architecture—that Zonal control—and the software for what Volkswagen calls “next-generation Software Defined Vehicles,” or SDVs. The JV will officially start on November 13th, 2024, with both companies beginning contributions to the JV on that date.
The best part? The JV focuses on more than just one market segment - it includes subcompact cars. That means a mass-market vehicle that’ll be built upon Rivian’s proven tech and software will one day be available - pushed forward by Volkswagen’s mass-market scale.
The JV will be based in Palo Alto, California, as well as some other sites in North America and Europe - for a total of up to four sites. It’ll be a chance for engineers from both companies to get together and figure out how to best leverage what both companies have to offer and build an appealing set of products.
JV Focuses
With the primary focus being on using Rivian’s pre-existing architecture and software stack, the R2 platform is a clear starting point for the JV - one of its key purposes will be to bootstrap the launch of the R2 in early 2026, and then go on to support the R3, and further Volkswagen vehicles sometime in 2027 and 2028.
Scaling Rivian’s technology will be challenging. While Rivian’s tech is modular, flexible, and highly capable, these advanced features come with a high price tag. To make vehicles that are both high-performing and affordable, the joint venture will need to focus on reducing costs without compromising on capability.
Interestingly, the JV also mentions automated driving functions - so we can probably expect Rivian’s Autonomy Platform to be present on these new vehicles as well - alongside a specific focus on OTA updates.
Rivian and Volkswagen have supposedly already built a driveable demonstrator vehicle, a Volkswagen car built to run on Rivian’s hardware and software, which sounds a lot like Scout…
We’re excited to see where this JV goes and how it helps shape Rivian, Rivian’s software platform, and the future of EVs.
Halloween is just a day away. Are you ready to sport all of your Rivian’s new Halloween features? Rivian added various features in their annual spooky update with Rivian update 2024.39. This year, Rivian has gone all out, with not one but three Halloween car costumes and various other features.
The car costumes are selectable through the Rivian app when the vehicle is parked - and so are all the other fun features.
Halloween Update
Rivian’s Halloween update this time is the biggest it's ever been. Before we dig into the Car Costumes, let’s take a look at the sprinkling of other spooky features they’ve provided.
New Drive Mode Animations
First up is the drive modes menu. Every drive mode in your vehicle has taken on a spooky look, so pan through your available drive modes while you’re parked to see all the Halloween fun. Look closely because some of the spooky surprises are well hidden. The only mode that doesn’t have a spooky surprise is snow mode.
Camp Mode also got a little something special. The flame of the campfire is lit by some witch’s evil magic and is burning green alongside some pumpkins and crows in the background. And just like last year, pedestrians are zombies - but that’s not all. Motorcyclists and bicyclists take on a new form in the visualization - they’ve come back as headless horsemen.
Rivian has also introduced two additional lock sounds for Halloween, an owl and a crow. While all of the Halloween goodies will go away once the season is over, Rivian has already said that the owl lock sound will come back as a standard lock sound in the future.
There are also two new interior lighting modes, the red Crimson Moon, and the green Foggy Bog. To go with that, there’s a new selection of three songs to play internally, as well as a sound effect board, all done from within the Rivian app.
The best plan is to play some spooky sound effects while your Rivian is parked outside on Halloween night to give some trick-or-treaters a fright!
The Costume Selector in the App
Rivian Wave
Knight Rider Car Costume
The Knight Rider costume dresses up Gear Guard Garry as Michael Knight and K.I.T.T.'s super intelligence takes over your car in the classic original TV show style. On Gen 2 vehicles, the lightbar up front will mimic K.I.T.T.’s unique red beam scanner, including the sound effect!
The Knight Rider interior screens
Rivian Wave
Over in the interior, you’ll get three unique displays inside your vehicle. On the driver’s display, you’ll see revs, speed, and a ton of other information, while the main display will tell you all about how ready K.I.T.T. is to tackle the bad guys. Finally, the passengers will have access to the tools K.I.T.T. has access to - everything from energy cannons and radars to Missiles and Turbo Boost.
Back to the Future Car Costume
Back to the Future dresses up Garry as none other than Doc Brown, and you’ll get a super cool set of movie-inspired interfaces on the inside of your vehicle. Gen 2 owners can hit the 88 mph button on their driver’s display and engage in Back to the Future-themed interior and exterior lighting, along with sound effects to match.
The Back to the Future Interior Screens
Rivian Wave
The driver’s display has all the information you’ll need to get your flux capacitor up and running, telling you all about the plutonium chamber and power you’ll need to hit 88 mph. The primary display will tell you when you’ve got your destination, what time it is now, and when you originally departed. The passengers get to keep an eye on the flux capacitor, and dial in the destination time!
Trunk or Treat Car Costume
Trunk or Treat has Garry as a scarecrow this year and has eight different sound effects and three color themes. That’s also alongside the option to select the thematic music for the interior of your vehicle.
All three interior screens will be haunted by ghosts and static, and Gen1 vehicle owners will get a green animation on the lightbar. Gen 2 owners will have their lightbar match their selected color.
Video Overviews
Jenna Ezarik over on X put together this awesome recap - so go take a look.
![Rivian Matrix Headlights: What They Are and How to Tell If You Have Them [VIDEO]](https://www.rivianwave.com/img/paths/storage/r1t/r1t_headlight.jpg/d8b668a69ef1b4256f3bb09d419ee369/r1t_headlight.jpg)
