Rivian Automotive Inc. (Nasdaq: RIVN) plans to enter a joint venture with Volkswagen Group to create software-defined vehicle (SDV) platforms to use in the automakers’ future lines of electric vehicles (EV).
Shares for the Irvine-based EV maker jumped 22% to $14.60 apiece during midday trading with a market cap of $14 billion.
As part of the deal, Volkswagen plans to invest $5 billion into Rivian, with an initial $1 billion to start. The venture is expected to begin in the fourth quarter.
The new technology will use Rivian’s “in-market zonal hardware design and integrated technology platform” as the foundation, the companies said in a statement. Any new vehicles resulting from the partnership are expected in the second half of the decade.
For more details, see the July 1st issue of the Business Journal.
