The partnership involves a joint venture with Volkswagen where $1 billion is initially invested, potentially rising to $5 billion. This funding will support the development of next-generation electric and electronic architectures for EVs. The joint venture aims to enhance Rivian's production capabilities in Normal, Illinois, and a new midsize platform.
The new vehicles span two primary platforms: the Gen 2 platform and a new mass-market architecture designed to appeal to a broader audience due to its affordability. Among the expected models are redesigned versions of Rivian's R1T and R1S on the Gen 2 platform and a possibly redesigned delivery van.
On the affordable front, Rivian plans to roll out an R2 SUV from Illinois starting at $45,000 by the first half of 2026. Following this will be the even more economical R3 and a potential mid-size pickup truck based on the same upcoming platform as R2 and R3.
Volkswagen benefits from this joint venture by leveraging Rivian’s innovation while expanding its offerings globally. Both companies expect this partnership to drive them toward positive cash flow and significant scalability in their operations.
Source: The Verge
