EV maker Rivian in $5 billion deal with Volkswagen

NORMAL, Ill. (WAND) — While the electric vehicle industry has seen sales declines recently, electric vehicle maker Rivian continues to work toward future growth.

Rivian announced in recent days it has plans for a joint venture with Volkswagen to create what they are calling “Industry-Leading Vehicle Software Technology.” The two companies will develop the next generation of software-defined vehicle (SDV) platforms to be used in their future electric vehicles.

“Our customers benefit from the targeted partnership with Rivian to create a leading technology architecture. Through our cooperation, we will bring the best solutions to our vehicles faster and at lower cost," Oliver Blume, CEO of Volkswagen Group. "We are also acting in the best interest of our strong brands, which will inspire with their iconic products. The partnership fits seamlessly with our existing software strategy, our products, and partnerships. We are strengthening our technology profile and our competitiveness."

Volkswagen Group will invest $1 billion in Rivian initially, with up to $4 billion in additional investment for a total expected to exceed $5 billion according to Rivian.

This comes months after the announcement of a $1.5 billion incentive package the company planned to use for investing in the facility and adding employees. The company is expected to produce its new R2 model at the Normal facility.