Rivian's ( RIVN ) stock is trending up on Friday after Volkswagen CEO Oliver Blume said it will expand on their new EV partnership. A Volkswagen boss said the company could offer “great opportunities” to Rivian. Here are the new programs that may be installed.
Rivian stock rises on Volkswagen EV partnership plans
After launching their new joint venture in November, “Rivian and VW Group Technology, LLC,” Volkswagen is already looking to expand its partnership with EV startups.
Blume told German media Spiegel that “Volkswagen Group offers good opportunities for a small brand like Rivian” on Friday. For example, a Volkswagen manager said, “We are thinking about sharing modules and combining purchase volumes.”
Volkswagen already plans to invest up to $5.8 billion in the partnership, which, according to Rivian CEO RJ Scaringe, is “a significant financial opportunity.”
So far, the partnership has primarily supported software. Rivian is using its software technology to develop a new EV architecture to power SDV (software-defined) electric vehicles.
Rivian already uses a platform and software stack, with seven control units. Volkswagen models typically have more than 100 of these units. Next steps could include joint acquisitions, deepening the VW/Rivian EV alliance.
The architecture is designed to reduce costs and speed up production. According to the report, Porsche's ultra-luxury three-row electric SUV, called the “K1” internally, and the Golf electric fan will be among the first EVs to feature the new layout.
Audi, Porsche, and the upcoming Scout brand in the US will use the new technology. The Scout will launch an electric off-road SUV and pickup built at Volkswagen's new plant in South Carolina starting in 2027.
The news comes after Rivian closed a loan agreement with the US Department of Energy (DOE) on Thursday to reach $6.6 billion in funding for its new EV plant in Georgia.
Rivian's second production facility will have electric models between R2 and R3. A small, affordable electric SUV and crossover will also benefit from the Volkswagen alliance.
On Friday, Rivian stock rose more than 5% after Volkswagen's Blume hinted at expanding a new EV partnership. Since third-quarter earnings were reported in November, RIVN shares have risen more than 57%. However, they are still down about 10% over the past 12 months.
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