Rivian Gets $1B Volkswagen Loan, No Payments Until 2028

Rivian closed on its $1 billion loan from Volkswagen today, with a 6.03% rate fixed for 10 years and no payment due until October 2028.

This loan was part of the original joint venture deal announced back in 2024, so it’s been on the calendar for a while. The collateral is limited to Rivian’s half of Rivian and Volkswagen Group Technologies, which means Rivian isn’t pledging its plants or any other part of the business to borrow this money.

With this one done, Volkswagen has now put $5.3 billion into Rivian out of the $5.8 billion it promised. The last $460 million comes in as equity and is due by January 2028.

This all helps shape Rivian’s finances over the next couple of years. The fixed rate locks in Rivian’s borrowing cost for the full decade, and the October 2028 start date means no payments on this loan while R2 ramps up.

Once that final $460 million lands by January 2028, Volkswagen will have delivered everything it committed when the partnership was first announced.

Jose Castillo Founder and Editor

Jose Castillo is the founder of RivianTrackr and has owned and driven Rivians since early in the brand's consumer history. He currently drives an R1S and an R2 in Florida and uses Universal Hands-Free every day. As a credentialed Rivian journalist, he has covered the R2 First Drive in Park City and SXSW firsthand and has spoken directly with Rivian's software and autonomy leadership.

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