Volkswagen Invests in Rivian Automotive, Eyes Joint Venture

Volkswagen AG has resolved to invest an initial $1 billion in Rivian Automotive, Inc. This move is part of a greater plan to establish a joint venture focused on next-generation electrical/electronic architecture (E/E architecture) for electric vehicles. Total investments could reach up to $5 billion by 2026.

The investment will be made through a Convertible Promissory Note, which will convert into shares upon obtaining necessary regulatory approvals. Volkswagen and Rivian will equally control the joint venture, each holding a 50% stake.

If the joint venture proceeds, Volkswagen plans additional investments in Rivian and the joint venture totaling $4 billion. These investments hinge on achieving certain milestones and successful technical integration review.

Volkswagen expects an unplanned cash outflow of up to €2 billion in 2024, revising its net cash flow forecast to between €2.5 billion and €4.5 billion and net liquidity to between €37 billion and €39 billion.