Rivian Automotive Inc. will get a much-needed cash infusion through a new partnership with Volkswagen AG as automakers large and small rethink their strategies in a slowing electric-vehicle market.
The companies announced plans for a joint venture supported by an initial $1 billion investment from VW in Rivian and up to $4 billion more over time. In exchange, VW will get access to the startup’s technology for use in its own EVs and a partner to develop “next-generation” battery-powered vehicles and software.