Rivian to Form EV Venture With $5 Billion From Volkswagen (2)

Volkswagen AG will invest $5 billion to form a joint venture with electric vehicle maker Rivian Automotive Inc., throwing a lifeline to the struggling startup and giving the German automaker access to the American EV company’s technology.

VW said in a release that it will invest $1 billion immediately in Rivian and an additional $4 billion over time. The new venture will be “equally controlled and owned” and aims to develop “next generation” battery-powered vehicles and software, VW and Rivian said in a joint statement.

Rivian’s shares surged following the announcement, gaining more than 50% in aftermarket trading. The ...