Volkswagen announced it would invest into EV maker Rivian earlier this week.
As the industry pivots toward electrified platforms, we’re seeing more joint ventures emerge in an effort to accelerate new model development and control costs. Another of those tie-ups came this week, as Rivian and Volkswagen Group both noted the latter’s significant $5 billion investment and its intent to share electric architectures and software in the coming years.
Crucially, the first vehicles to actually emerge from this tie-up will make their way out to buyers before 2030. In the shorter term, though, Volkswagen and its subsidiaries will get to leverage Rivian’s existing modular architectures and software platforms, while Rivian will secure important funding to launch its next-generation electric vehicles, including the R2, R3 and R3X it debuted earlier this year.
Through its announcement to investors, though, Rivian’s longer-term plans are more apparent. Beyond the recently revamped R1T and R1S as well as the R2 lineup, more vehicles (shown under sheets in the slide above) are evidently on the way. We aren’t talking anytime soon and probably not before we’re nearing the end of this decade, but as many as five new models could be on the way.
To sort out Rivian’s lineup, the presentation slide separates the portfolio into four different buckets. “Gen 1” refers to Rivian’s original R1 launches and its EDV/ECV van. The “Gen 2” is where we are now with the updated R1S and R1T, although it’s unclear what the third vehicle represents. Could it be something more rugged like an R1X? It looks like an SUV, but obviously we are strictly guessing and what’s hiding under the sheet.
Same goes for the other vehicles. “MSP” is Rivian’s “midsize” range, which includes the R2 and R3 lineups we already saw. Again, there’s a different model under the sheet, and while it looks like a smaller truck (perhaps something Maverick-sized?), we’ll have to wait and see.
Perhaps most interesting to the everyday buyer is the last section with “Affordable Mass Market” vehicles. Rivian doesn’t have anything in this particular category yet, as the most affordable model will eventually be the R2 when it launches in 2026, with a price tag around $45,000. The R3 will inevitably be cheaper, but that won’t be out until at least 2027. These “affordable” vehicles will probably feature last in the company’s next set of rollouts, though it will have some fresh competition as other manufacturers seek to boost EV sales volumes with more budget-friendly cars.
As far as Volkswagen’s $5 billion investment is concerned, the funding will arrive in tranches. The company’s initial investment will be $1 billion (money which Rivian can use to kick-start production of MSP vehicles at its Georgia plant). That first chunk of cash will arrive through a $1 billion unsecured convertible note, which will convert based on equity in the company based in part on share prices as of December 1. Beyond that, the additional $4 billion will come through a $1 billion payment at the inception of the joint venture later this year, two other $1 billion equity investments in 2025 and 2026 if the JV reaches certain milestones, and a final $1 billion loan available in 2026.
It’s also unclear, for the moment, what effect this investment might have on Scout Motors. While the company hasn’t officially made a comment, it is currently constructing a brand-new facility in Blythewood, South Carolina, and is setting up to build a new, modern (and electric) interpretation of the classic International Harvester Scout SUV.
