Rivian gets another $1 billion from Volkswagen

Winter testing has been completed for Volkswagen ID every1the first vehicle under a joint venture between Rivian and Volkswagen Group to be equipped with the automaker’s electric and electrical engineering software. This isn’t just progress toward getting this vehicle into customers’ hands; It also unlocks another $1 billion investment from Volkswagen Group in Rivian.

About $750 million comes in the form of equity investment. The other $250 million is either equity or convertible debt, depending on the prototypes the Volkswagen Group has submitted to Rivian for testing. (The companies did not immediately clarify this.)

The German auto giant has already invested just over $3 billion in Rivian as part of the joint venture. There is more to come. Rivian will be able to borrow up to $1 billion from the Volkswagen Group starting in October. Rivian is also getting another $460 million investment from Volkswagen after putting the first car on sale using joint venture technology. All told, the deal could be worth up to $5.8 billion for Rivian.

The important batch was delivered for winter testing just months before Rivian began selling the R2 SUV, which founder and CEO RJ Scaringe said was “probably the most important thing we’ve launched yet.” Rivian depends on Very fast scaling R2 production and sales.