June 29 (Reuters) – German news agency DPA reported today that Volkswagen Group will inject a second 1𝑏𝑖𝑙𝑙𝑖𝑜𝑛(𝑎𝑝𝑝𝑟𝑜𝑥𝑖𝑚𝑎𝑡𝑒𝑙𝑦7.169𝑏𝑖𝑙𝑙𝑖𝑜𝑛𝑦)𝑝𝑎𝑦𝑚𝑒𝑛𝑡𝑖𝑛𝑡𝑜𝑖𝑡𝑠𝑝𝑎𝑟𝑡𝑛𝑒𝑟𝑅𝑖𝑣𝑖𝑎𝑛𝑜𝑛𝑀𝑜𝑛𝑑𝑎𝑦.𝑇ℎ𝑖𝑠𝑚𝑎𝑟𝑘𝑠𝑝𝑎𝑟𝑡𝑜𝑓𝑉𝑜𝑙𝑘𝑠𝑤𝑎𝑔𝑒𝑛’𝑠𝑡𝑜𝑡𝑎𝑙𝑝𝑙𝑒𝑑𝑔𝑒𝑑𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡𝑜𝑓𝑢𝑝𝑡𝑜1billion(approximately7.169billionyuanatcurrentexchangerates)paymentintoitspartnerRivianonMonday.ThismarkspartofVolkswagen’stotalpledgedinvestmentofupto5.8 billion in Rivian, following Rivian’s achievement of key financial milestones in early May.

Breakdown of the $5.8 Billion Investment:

$3.5 billion to acquire Rivian shares (potentially making Volkswagen the largest shareholder, surpassing Amazon).

$2.3 billion for the joint venture Rivian Volkswagen Technologies, established by late 2024, to develop shared electric architecture and software platforms.

The investment grants Volkswagen access to Rivian’s advanced EV technology. After this tranche, Volkswagen’s stake will rise from the initial 8.6% post-first investment in 2023.

Founded in 2009, Rivian has posted gross profits for two consecutive quarters but recorded a net loss of 541𝑚𝑖𝑙𝑙𝑖𝑜𝑛𝑙𝑎𝑠𝑡𝑞𝑢𝑎𝑟𝑡𝑒𝑟(𝑎𝑠𝑖𝑔𝑛𝑖𝑓𝑖𝑐𝑎𝑛𝑡𝑖𝑚𝑝𝑟𝑜𝑣𝑒𝑚𝑒𝑛𝑡𝑓𝑟𝑜𝑚541millionlastquarter(asignificantimprovementfrom1.445 billion). Future payments hinge on technical milestones:

Third $1 billion installment by mid-2026.

Final $500 million payment in 2027.

The partnership aims to accelerate software-defined vehicle development while bolstering Rivian’s financial stability amid its scaling phase.