Volkswagen and Rivian Explore Selling EV Technology to Other Carmakers
Volkswagen AG and Rivian Automotive Inc. are considering offering the electric vehicle (EV) technology they are jointly developing to other automakers in the future. The two companies have partnered through a joint venture named RV Tech, which is making significant strides in creating an EV electrical and software platform designed to help Volkswagen compete more effectively with industry leaders like Tesla and various Chinese manufacturers.
Progress on Scalable EV Platform
RV Tech is currently focused on developing platforms to support upcoming models from both Rivian and Volkswagen. However, the venture is actively engaged in discussions with third parties, signaling openness to expanding the reach of its technology based on the scalability of its systems. The platform under development is intended to be versatile, capable of spanning various vehicle sizes and segments relevant to Western markets.
“We’re solving a problem for the larger automotive industry,” said Wassym Bensaid, Rivian’s software chief and co-chair of RV Tech, during a press event held in Palo Alto, California. Bensaid indicated that this solution could present new business opportunities beyond the initial partners.
Licensing Prospects and Testing Plans
Licensing the EV technology to other carmakers represents a distinct revenue potential, according to Bensaid, highlighting that the margin profile from such licensing would differ materially from direct vehicle manufacturing. Looking ahead, RV Tech plans to begin winter condition testing of the system on a range of vehicles from Audi, Volkswagen, and the Scout brand starting in the first quarter of 2026. Historical Context and Strategic Importance for Volkswagen
Volkswagen has a track record of licensing technology to other automakers; for instance, Ford and Mahindra & Mahindra previously utilized Volkswagen’s first-generation EV platform for their electric vehicles. Currently, Volkswagen faces several market challenges including tariffs in the U.S., declining deliveries in China, and lukewarm demand within Europe. To address these hurdles and reduce costs, Volkswagen is leveraging Rivian’s software and technology expertise, areas where its own initial battery-electric models had deficits.
The partnership is a major strategic investment for Volkswagen, with the company committing up to $5.8 billion to the alliance. Under CEO Oliver Blume, this collaboration represents one of Volkswagen’s most significant bets to advance its EV ambitions.
Joint Venture Collaboration and Future Outlook
Established a year ago, the RV Tech joint venture unites software developers and engineers from both companies. They are working to implement Rivian’s centralized electronics architecture, which features fewer computing units. This design approach is aimed at simplifying vehicle development processes and lowering production costs.
For Rivian, which has been reporting financial losses, the partnership provides critical financial support as it navigates a cooling EV market and manufactures reassess strategies. Although the joint venture currently prioritizes electric vehicle platforms, JV co-chair Carsten Helbing noted that the technology could also be adapted for combustion engine vehicles.
Upcoming Models Featuring RV Tech Platforms
The first vehicle to incorporate the new technology will be Rivian’s R2 sport utility vehicle, slated for release in early 2025. Volkswagen’s compact EV, the ID. EVERY1—which is anticipated to be priced around €20,000 (approximately $23,000)—is expected to launch in 2027. Following that, rugged vehicles from the Scout brand will enter the market. Additionally, Volkswagen maintains a similar partnership with Chinese EV maker Xpeng Inc. for the Chinese market.
Addressing Past Software Challenges
Volkswagen’s earlier attempts to develop software internally encountered difficulties, delaying the launch of its ID series electric vehicles and limiting sales due to software issues. However, improvements in software quality and model updates have contributed to rising EV sales across Volkswagen’s brand portfolio, which includes Audi and Porsche, particularly in Europe this year.
In summary, Volkswagen and Rivian’s joint endeavor through RV Tech not only represents a critical step in enhancing their competitive positioning within the EV market but also holds promise to reshape industry dynamics by potentially licensing advanced EV technology to a broader range of carmakers.
