Volkswagen (VW) says it will invest up to $5 billion in EV maker Rivian.
The deal creates a joint venture that will allow VW and the US-based EV manufacturer to share technology. It has already proven popular with investors as Rivian shares jumped by almost 50% after the announcement.
Where are Rivian EVs manufactured?
The tie-up comes as competition intensifies between EV makers and Western countries move to impose tariffs on Chinese imports, reports BBC.com.
Under the agreement, VW said it will initially invest $1 billion in the electric truck and SUV maker, with another $4 billion to be put into the company by 2026.
Are electric pickups overtaking ICE pickups?
Founded in 2009, Rivian has not yet posted a quarterly profit. In the first three months of 2024 the company saw a net loss of more than $1.4 billion.
Source: BBC.com
