OREANDA-NEWS German Volkswagen is investing from $1 to $5 billion in the American electric car manufacturer Rivian, the latter said in a statement.

In particular, the German concern will buy a $1 billion convertible bond and plans to invest up to $4 billion more in Rivian.

Additional investments include the purchase of $2 billion worth of shares in 2025-2026 and the same amount in the form of a loan, as well as payments for the creation of an equal-value joint venture to develop electric vehicle platforms, which both companies will begin using in the second half of the decade.

In addition, Volkswagen will have access to existing Rivian technologies.

At the same time, both companies will continue to produce their own cars independently of each other.

Rivian shares soared in price by almost 1.5 times following the results of additional trading on Tuesday. Volkswagen securities are getting cheaper by 1% on Wednesday.