Rivian automotive industry And Volkswagen Group have released details of their previously announced joint venture ahead of the start of operations on Wednesday.

The companies said in a joint press release on Tuesday that the size of the deal now amounts to $5.8 billion – up from the initial $5 billion – with the first VW models using the software and electrical architecture of electric car maker Rivian use will arrive as early as 2027.

Volkswagen is expected to use Rivian’s technologies “across a wide range of price points and in international markets,” enabling advanced automated driving features and over-the-air updates and upgrades, the companies said.

“We are thrilled to see our technology being integrated into vehicles beyond Rivian, and we look forward to the future,” Rivian CEO RJ Scaringe said in a statement.

The name of the joint venture, which was expected to close in the fourth quarter, is “Rivian and VW Group Technology, LLC.”

The joint venture deal was initially announced in June and came as Rivian seeks to raise additional capital as it launches its redesigned models and prepares to produce new “R2” vehicles in early 2026.

Scaringe previously said VW’s capital is expected to help the company ramp up production of its smaller R2 SUVs at its Normal, Illinois, plant starting in 2026, and produce a mid-size EV platform in a factory in Georgia. , where Rivian paused construction earlier this year.

VW has already made an initial investment of $1 billion in the form of a convertible bond, the companies said. Upon closing of the joint venture, VW will invest approximately $1.3 billion “in consideration for background IP licenses and a 50% equity stake in the joint venture.”

The remaining investment of up to $3.5 billion is expected to take place in 2027 “in the form of equity, convertible bonds and debt at future dates and based on clearly defined milestones,” the companies said.

Rivian did not immediately respond when asked why the size of the deal was increased to $5.8 billion.

The joint venture will be led by Rivian Chief Software Officer Wassym Bensaid and VW Group Chief Technical Engineer Carsten Helbing.

The companies said developers and software engineers from both companies will join the joint venture. The teams will initially be based in Palo Alto, California, with three additional locations in development in North America and Europe.