On November 12, 2024, Rivian Automotive, Inc. entered into a significant transaction agreement with Volkswagen International America, Inc. and Volkswagen AG to establish a joint venture named Rivian and VW Group Technology, LLC. The joint venture, which is set to close on November 13, 2024, will focus on electrical architecture technology, specifically in software, electronic control units, and network architecture design and development. Rivian Automotive will receive $1.32 billion from the Volkswagen Group as part of the agreement for its joint venture interest and for licensing intellectual property. Both Rivian SPV, a wholly-owned subsidiary of Rivian Automotive, and VW SPV, a wholly-owned subsidiary of Volkswagen AG, will each own 50% of the joint venture. Additionally, each party will contribute $30 million for working capital and...Show More

On November 12, 2024, Rivian Automotive, Inc. entered into a significant transaction agreement with Volkswagen International America, Inc. and Volkswagen AG to establish a joint venture named Rivian and VW Group Technology, LLC. The joint venture, which is set to close on November 13, 2024, will focus on electrical architecture technology, specifically in software, electronic control units, and network architecture design and development. Rivian Automotive will receive $1.32 billion from the Volkswagen Group as part of the agreement for its joint venture interest and for licensing intellectual property. Both Rivian SPV, a wholly-owned subsidiary of Rivian Automotive, and VW SPV, a wholly-owned subsidiary of Volkswagen AG, will each own 50% of the joint venture. Additionally, each party will contribute $30 million for working capital and other assets. The joint venture will be governed by a Board of Directors with equal representation from both companies and managed by two Co-CEOs, one from each company. Furthermore, Rivian Automotive will enter into an investment agreement with Volkswagen, where VW will invest in Rivian through the sale and issuance of shares and/or a convertible note in three separate tranches, subject to certain milestones and conditions. The joint venture and Rivian SPV will also enter into loan agreements with VW SPV for a $1.0 billion term loan facility, with the proceeds intended for general corporate purposes of Rivian Automotive.