The new agreement, which builds on an earlier announcement, calls for the German automaker to invest $5.8 billion in Rivian, a maker of electric vehicles.

Last June, VW said it would invest $5 billion in Rivian as part of a new joint venture that’s focused on developing a new electrical architecture and vehicle software for future models, including subcompact cars, with the first planned for 2027. The investment size has now increased to $5.8 billion.

The joint venture targets Rivian’s existing electrical architecture and software technology stack, enabling the launch of Rivian’s R2 model in the first half of 2026, the companies said.

The joint venture will use the EV maker's existing technology to launch Rivian R2 in the first half of 2026 and potentially debut Volkswagen Group models as early as 2027.

Rivian is teaming up with Volkswagen in a $5.8 billion joint venture for EV innovation on its R2 model, which the company says will eventually be manufactured in Georgia. Electric vehicle startup Rivian Automotive Inc.

Rivian Automotive Inc. and Volkswagen Group have launched their upsized joint venture, vowing to join forces to create “cutting edge” EV technology.

Volkswagen AG and Rivian Automotive Inc. named leaders for their multibillion-dollar joint venture and showcased a prototype electric vehicle, signaling their commitment even as global EV demand softens and the incoming Trump administration threatens to curtail supportive policies.

Volkswagen Group raised its investment in Rivian by 16% to $5.8 billion and the two companies said on Tuesday they were launching their previously announced joint venture to develop electric vehicle architecture and software.