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Rivian and Volkswagen have announced a joint venture initially worth $ 1 billion to create the next generation of software-defined vehicles for both companies. Future investments and loans adding up to an additional $4 billion will occur in 2025 and 2026. The venture will be equally owned and controlled by both companies to lower the cost per vehicle of both companies' vehicles. Rivian will contribute its electrical propulsion and battery expertise and license its software to the joint venture. The move gives Volkswagen access to Rivian's current EV propulsion designs to accelerate the rollout of VW Group vehicles. Rivian points out that this agreement does not cover areas such as chassis or non-propulsion-related component design. This means that the VW group's upcoming Scout brand will not feature badge-engineered Rivians. The investment will provide Rivian with some much-needed cash as it builds a new production facility in Georgia and gears up for the production of the Rivian R2 and Rivian R3.