Winter testing has concluded for the VW ID.EVERY1, the inaugural vehicle from the Rivian and Volkswagen Group joint venture featuring Rivian’s software and electrical architecture. This achievement not only progresses the delivery of this vehicle to consumers but also triggers an additional $1 billion investment from Volkswagen Group into Rivian.
Approximately $750 million of this investment is through equity, while the remaining $250 million could be either equity or convertible debt, contingent on the prototypes provided by Volkswagen Group to Rivian for testing, which was not specified.
Volkswagen has already invested over $3 billion in Rivian as part of their joint venture, with more to follow. Starting in October, Rivian will have access to up to $1 billion in loans from Volkswagen Group. Additionally, after the first vehicle utilizing the joint technology is sold, Rivian will receive a further $460 million equity investment from Volkswagen. Overall, the agreement could be valued at up to $5.8 billion for Rivian.
The winter testing milestone payment was made just months ahead of Rivian introducing the R2 SUV, described by founder and CEO RJ Scaringe as potentially their most significant launch to date. Rivian is relying on rapid scaling of R2 production and sales.