German automaker Volkswagen will invest up to $5 billion in U.S. electric vehicle maker Rivian as part of a new 50-50 joint venture to share electric vehicle architecture and software, the companies announced Tuesday.
Rivian shares jumped 22% in aftermarket trading.
The partnership will help Volkswagen accelerate its plans to develop software-defined vehicles (SDVs), with Rivian licensing its existing intellectual property rights to the joint venture.
While electric vehicle startups have faced slowing demand due to high interest rates and less capital, traditional automakers have struggled to build battery-powered vehicles and advanced software.
Source: Terra
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