Transportation
Volkswagen Invests $5 Billion in EV Startup Rivian to Form Joint Venture
- EV partnership will focus on technology for new vehicles
- Automakers have revised strategies amid market slowdown
Volkswagen AG is taking another swing in its long struggle to catch up with Tesla Inc., plowing $5 billion into a tie-up with the US company’s closest would-be rival, Rivian Automotive Inc.
VW and Rivian are set to jointly develop battery-powered vehicles and software, a partnership that will give the German carmaker access to the US company’s technology. For loss-making Rivian, the deal is a financial lifeline as manufacturers large and small rethink strategies in a slowing EV market.