Volkswagen buddies up with Rivian

America is embracing electrification the way it’s always done – by going big. Really big. Where once it was all about big combustion engines brands like Rivian now do the same but with massive batteries in enormous SUVs and pick-ups, range and horsepower the new bragging rights in a typically supersized American twist on sustainability. And now VW wants a piece of the action, confirming a $5.8bn joint venture with Rivian to pool knowledge and resources in the development of future electric cars.
The story of Californian tech start-ups muscling in on the turf of legacy carmakers is one of mixed fortunes, Tesla’s disruptive influence a true game-changer while others, like recently bankrupted Fisker, have found it harder going. Often painted as antagonists, this more collaborative approach between a tech newcomer and multi-brand behemoth of car manufacturing hopes to combine the best of both, with Rivian’s innovation in batteries and motors joining VW’s proven track record of building the platforms to carry them to the mainstream market.

“We’re thrilled to see our technology being integrated in vehicles outside of Rivian, and we’re excited for the future,” says Rivian founder RJ Scaringe. “Rivian will continue to stay focused on creating best in class products and services that benefit our customers, helping to drive EV adoption.”
For his part Volkswagen Group CEO Oliver Blume is similarly optimistic about what the partnership has to offer both brands. “The partnership with Rivian is the next logical step in our software strategy,” he says. “We have a clear plan to offer our customers the best products and digital experiences at attractive prices through state-of-the-art development processes, innovative technological approaches, and a competitive cost base.” It's the latest in a long and tangled web of alliances and partnerships driven by the huge costs of transitioning these manufacturing businesses out of reliance on internal combustion and into electric. Costs that have seen Toyota working with BYD on batteries and Ford using VW’s electric platforms under its latest Explorer and Capri. Indeed, it was only last year that Rivian was working with Polestar on a report about how carmakers are doomed to miss its targets in the goal of capping the rise in global temperatures to 1.5 degrees. What this latest partnership will mean in terms of products and the kind of cars we’ll be buying in the not-too-distant remains to be seen. But it’s another big shift in the automotive powerbase that’s as much about geopolitics as it is mobility.