Volkswagen Looks to Strengthen Partnership with Rivian

Volkswagen and Rivian are taking their collaboration to the next level. In an interview with Spiegel magazine, VW CEO Oliver Blume revealed that the two companies are exploring ways to strengthen their partnership. This could include sharing components and combining purchasing efforts to cut costs. “The Volkswagen Group offers great opportunities for a small brand like Rivian,” Blume said.

The market reacted positively to the news, with Rivian’s stock climbing over 3% in premarket trading.

This move builds on the joint venture the two companies launched last year. Volkswagen increased its financial commitment to the partnership from $5 billion to $5.8 billion, with the goal of sharing technology and resources to address the challenges of the competitive EV market.

For Rivian, which has yet to turn a profit, this partnership provides vital funding as it prepares to launch the R2. The R2 is designed to be a smaller, more affordable addition to Rivian’s lineup, aimed at broadening its appeal.

Volkswagen also benefits significantly from the collaboration, gaining access to Rivian’s cutting-edge technology. The first VW vehicles using this tech are expected to debut in 2027.

As the EV market faces slower growth and increasing competition, particularly from Chinese automakers, partnerships like this highlight how automakers are joining forces to stay ahead. It’s a strategic win for both companies—and for the EV industry as a whole.