Rivian, Volkswagen eye selling EV technology to other carmakers

Published: Thursday, November 13, 2025 at 5:07 pm

Volkswagen and Rivian Explore Licensing EV Technology to Other Automakers

Volkswagen AG and Rivian Automotive Inc. are considering licensing the electric vehicle (EV) technology they are developing together to other car manufacturers. The joint venture, known as RV Tech, is focused on delivering an EV electrical and software platform for both Rivian and Volkswagen models. However, the companies are also exploring the scalability of their platform for use by third parties.

According to Wassym Bensaid, Rivian's software chief and RV Tech co-chair, the platform is designed to be scalable across various vehicle sizes and segments in Western markets. The potential for revenue from licensing the technology is seen as a significant opportunity, offering a different margin profile compared to car manufacturing.

RV Tech plans to begin testing the system in winter conditions on Audi, VW, and Scout models starting in the first quarter of 2026. Volkswagen has previously licensed its technology to other automakers, including Ford Motor Co. and Mahindra & Mahindra.

Volkswagen is facing challenges including US tariffs, declining deliveries in China, and subdued demand in Europe. The partnership with Rivian is part of its strategy to cut costs and boost sales, addressing the software and EV technology gaps in its initial battery-powered models. Volkswagen is investing up to $5.8 billion in the alliance.

The joint venture, formed a year ago, combines software developers and engineers from both companies. They are utilizing Rivian's centralized electronics layout, which aims to simplify development and reduce costs for Volkswagen. For Rivian, the investment provides financial support in a slowing EV market.

The technology could potentially be adapted for combustion engine cars as well. The first vehicle to utilize the new technology will be Rivian's R2 sport utility vehicle, expected early next year. Volkswagen's compact EV, the ID. EVERY1, is slated for 2027, followed by rugged vehicles from the Scout brand. Volkswagen also has a similar partnership with Xpeng Inc. for the Chinese market.

Volkswagen's previous attempts to develop software in-house faced setbacks, impacting the launch and sales of its ID models. Despite these challenges, the group, which includes Audi and Porsche AG, has seen EV sales increase in Europe this year after software improvements and model updates.

BNN's Perspective: This move by Volkswagen and Rivian highlights the evolving landscape of the automotive industry. While the focus remains on delivering vehicles for their own brands, the potential to license technology to other manufacturers could provide a significant revenue stream and accelerate the adoption of EV technology. However, the success of this strategy will depend on the platform's adaptability and the willingness of other automakers to adopt it.

Keywords: Volkswagen, Rivian, EV technology, licensing, joint venture, RV Tech, electric vehicles, software platform, scalability, automakers, ID. EVERY1, R2, Scout, Ford, Mahindra, Xpeng, electric car, EV, car manufacturing, automotive industry

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