Volkswagen has raised its planned investment in a joint venture with US electric car maker Rivian to $5.8 billion, an increase of $800 million from the initial investment announced in June.
Oliver Blume, CEO of Volkswagen, said during a press conference that the company expects to use Rivian’s technologies across a wide range of markets and brands, according to CNBC.
He added that it is expected that Rivian software will begin integrating with the Volkswagen brand, then Audi, in addition to the upcoming brand, Scott.
For his part, Rivian’s CEO said in a statement: We are happy to see our technology integrated into vehicles outside our brand and we are excited about the future.
The new joint venture — Rivian and Volkswagen Group Technologies — will officially kick off November 13 as an independent company.
And, if successful, it could be a boon for both companies. Rivian gets a needed injection of capital and the opportunity to diversify its business, while VW Group gains a next-generation electrical architecture and software for EVs that will help it better compete.
Both companies argue the joint venture will reduce development costs and help scale new technologies more quickly.