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Volkswagen Completes Second $1B Tranche to Rivian, Raising Stake to 8.6%

The milestone payment sets up VW to deploy Rivian’s advanced software architecture in its 2027 ID.1 electric compact.

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Overview

  • Volkswagen disbursed the second $1 billion tranche on June 29 after Rivian secured two consecutive quarters of gross profit, boosting VW’s equity stake to 8.6 percent.
  • Through the cooperation VW has committed up to $5.8 billion, comprising $3.5 billion in staged equity investments and $2.3 billion into the Rivian Volkswagen Technologies joint venture.
  • VW’s remaining funding obligations include $1 billion in mid-2026 upon meeting agreed technology milestones and $500 million in 2027 when the first Rivian-powered ID.1 begins series production.
  • Rivian’s zonal electronics architecture aims to resolve Volkswagen’s persistent in-house software delays by simplifying vehicle electronics with fewer control units.
  • The 2027 ID.1, slated for production in Palmela at an estimated €20,000 price point, will be the first VW model to leverage Rivian technology and could propel VW past Amazon as Rivian’s largest shareholder.