Volkswagen Group (VW) and Tesla rival Rivian have launched a three way partnership, with the German automobile large rising its funding within the partnership.
The 2 firms say the the deal is now value $5.8bn (£4.55bn) – up from an preliminary pledge of $5bn by VW.
Shares within the US electrical automobile (EV) maker jumped greater than 9% in after-hours buying and selling following the announcement.
The tie-up will see the companies sharing vital know-how at a time of slowing world demand for electrical automobiles and elevated competitors from Chinese language rivals.
The three way partnership offers loss-making Rivian with an important supply of funding because it prepares for the launch subsequent yr of its R2 mannequin – a sports activities utility automobile (SUV) that’s smaller and extra reasonably priced than its present choices.
It additionally means VW will be capable of use Rivian’s know-how in its personal vary of automobiles.
The primary VW fashions outfitted with Rivian know-how are anticipated to be obtainable to prospects as early as 2027.
“By combining their complementary experience, the 2 firms plan to cut back growth prices and scale new applied sciences extra shortly,” the 2 firms mentioned in an announcement.
Below the plan, builders and software program engineers from each companies will initially work aspect by aspect in California, whereas three different amenities in North America and Europe might be arrange.
