Rivian Automotive (NASDAQ: RIVN), a leading electric vehicle manufacturer, and Volkswagen have announced a joint venture to develop next-generation electrical architecture and software technology. 

This partnership aims to accelerate software development for both companies by combining strengths, reducing costs, and increasing innovation. Rivian's existing hardware design and technology will be the foundation for future developments, with Rivian contributing its expertise and licensing intellectual property to the JV.

The company's plan to launch vehicles with this co-developed technology in the latter half of the decade. In the short term, Volkswagen will use Rivian's current electrical architecture and software. As part of this joint venture, Volkswagen plans to invest $5 billion in Rivian, beginning with a $1 billion unsecured convertible note with an additional $4 billion to follow. 

RJ Scaringe, Founder and CEO of Rivian stated: “We’re very excited to be partnering with Volkswagen Group. Since the earliest days of Rivian, we have been focused on developing highly differentiated technology, and it’s exciting that one of the world’s largest and most respected automotive companies has recognized this.”

Rivian is an American automotive manufacturer that develops and builds category-defining electric vehicles and accessories.

Shares of Rivian Automotive trade on the NASDAQ under the ticker symbol RIVN.