Volkswagen (VW) says it’ll make investments as much as $5bn (£3.94bn) in US electrical car (EV) maker Rivian.
The deal creates a three way partnership that can enable the German automobile making big and the Tesla rival to share know-how.
Rivian shares jumped by round 50% after the announcement.
The tie-up comes as competitors intensifies between EV makers within the face of slowing gross sales and extra firms getting into the market.
Underneath the settlement, VW mentioned it’ll initially make investments $1bn within the electrical truck and SUV maker, with one other $4bn to be put into the corporate within the coming years.
Based in 2009, Rivian has not but posted a quarterly revenue. Within the first three months of 2024 the corporate misplaced $1.5bn.
VW has come beneath stress from rivals like Tesla and China’s BYD because it tries to develop its share of the EV market.
