Winter testing has concluded for the VW ID EVERY1, the first vehicle from a joint venture between Rivian and Volkswagen Group to feature Rivian’s software and electrical architecture. This milestone not only advances the vehicle toward production but also triggers an additional one billion dollar investment from Volkswagen into Rivian.
Approximately seven hundred fifty million dollars of this sum arrives as a direct equity investment. The remaining two hundred fifty million is provided either as equity or convertible debt, depending on the specific prototype vehicles Volkswagen supplied for testing. The companies did not immediately clarify this detail.
Volkswagen Group has already invested just over three billion dollars in Rivian as part of this partnership, with further funding planned. Starting in October, Rivian will gain access to borrow up to one billion dollars from Volkswagen. An additional four hundred sixty million dollar equity investment from Volkswagen will follow after the first vehicle using the joint venture technology goes on sale. In total, the agreement could deliver as much as five point eight billion dollars to Rivian.
This payment for completing winter testing arrives just months before Rivian begins sales of its new R2 SUV. Founder and CEO RJ Scaringe has called the R2 perhaps the most important product the company has ever launched. Rivian is counting on an exceptionally rapid scaling of R2 production and sales.