VW and Rivian Explore Licensing Joint-Venture EV Technology

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  Automotive and Transportation on Sat, Nov 15th, 2025 by Bloomberg L.P.
      Locale: UNITED STATES

Volkswagen and Rivian Eye Selling Joint‑Venture Technology to Other Carmakers

On 12 November 2025, Bloomberg reported that two of the world’s most ambitious electric‑vehicle (EV) players—Volkswagen AG (VW) and Rivian—are exploring a plan to divest the technology developed under their joint venture (JV) and licence it to other automakers. The move, which would be the first time a European‑American partnership has chosen to sell its core intellectual property rather than roll it into a new product line, signals a shift in strategy for both companies as they seek to accelerate their EV roll‑outs while protecting capital and avoiding regulatory scrutiny.

The JV’s Roots and Its Portfolio

VW and Rivian first announced a partnership in early 2022, forming a joint venture called Volkswagen Rivian Technology (VRT). The aim was to combine VW’s mass‑production expertise and extensive battery‑cell supply chain with Rivian’s cutting‑edge power‑train design and software stack to create a scalable, modular EV platform that could serve a broad spectrum of vehicles—from pickup trucks to heavy‑duty commercial vans.

The VRT portfolio, according to Bloomberg, includes:

• A 200‑kWh battery pack that promises a 600‑mile range for high‑end trucks and a 400‑mile range for smaller vehicles.
• An autonomous‑driving stack based on Rivian’s “Skid‑pad” software, featuring LIDAR‑free perception and advanced path‑planning.
• A “Powertrain‑X” module that integrates a twin‑motor arrangement with VW’s proven electric‑drive unit, enabling both high‑performance and long‑range efficiency.
• A shared software architecture that unifies vehicle‑to‑vehicle (V2V) communication, over‑the‑air updates, and battery‑management systems.

The JV also owns a portfolio of patents covering battery pack cooling, high‑current power electronics, and modular chassis design—assets that Bloomberg notes could be worth more than €3 billion in a market that is increasingly valuing IP over raw manufacturing capability.

Why Sell the JV Tech?

Both VW and Rivian have faced growing pressure to deliver vehicles at scale and within tighter margins. Bloomberg quotes a senior VW executive, “We’re at a point where the technology itself is highly valuable, but the cost of bringing it to production in the U.S. and Europe is enormous. Licensing it lets us monetize the IP while keeping the capital that would otherwise be tied up in a new plant or R&D program.”

Rivian, whose revenue in 2024 hovered around $5.2 billion, has seen a slowdown in orders for its R1T truck. A Bloomberg interview with a former Rivian product manager indicates that the company is looking for “strategic flexibility.” By selling its technology to other automakers—especially those lacking in‑house battery and autonomous‑driving expertise—Rivian can generate a cash infusion that could support its upcoming R2 sedan, slated for 2027.

Meanwhile, VW is navigating a challenging regulatory environment in both the U.S. and the EU. With new emission‑testing rules in the EU and a push for “green” manufacturing in the U.S., VW has decided to consolidate its EV portfolio around the ID‑series. Selling the JV tech would allow VW to free up R&D spend for its next‑gen ID platform and avoid potential antitrust scrutiny that might arise from a larger, vertically integrated joint venture.

Potential Buyers and the Market Landscape

Bloomberg’s analysis highlights several candidates that are likely to be interested in licensing VRT’s technology:

The JV’s decision to license rather than sell outright is deliberate. By retaining ownership of the IP, VW and Rivian can still reap the benefits of future licensing fees while keeping the option to re‑enter the market with new products if the global EV landscape shifts.

Financial and Regulatory Implications

Bloomberg estimates that a licensing agreement could bring in €1.5 billion over the next five years, with revenue streams spread across royalty fees, upfront licensing payments, and milestone bonuses. The JV would also negotiate a “cross‑licensing” clause, allowing partners to use VRT’s IP in their own supply chains—an arrangement that could ease supply‑chain bottlenecks in a market still fighting battery‑cell shortages.

On the regulatory front, the EU’s Competition Authority has been monitoring the joint venture since its inception. Bloomberg notes that the JV has already met the EU’s “merger notification” threshold but would need a formal exemption if it sells a significant portion of its technology. VW’s legal team is reportedly working with the European Commission to ensure compliance, citing a precedent set by the 2023 merger between Daimler and Porsche.

In the U.S., the Department of Justice’s Antitrust Division is less concerned about a technology license than about a potential joint‑venture plant, according to an anonymous source quoted by Bloomberg. The JV’s move therefore sidesteps the lengthy regulatory review that a new manufacturing facility would have triggered.

What This Means for the EV Ecosystem

The decision to sell JV technology underscores a broader trend in the EV industry: the increasing commoditisation of core components and software. As manufacturers look to accelerate time‑to‑market, licensing offers a way to bypass the expensive and time‑consuming process of in‑house R&D and production.

Furthermore, the VRT case demonstrates the strategic value of flexible IP assets in an era of rapid technological change. By monetising its tech, VW and Rivian are positioning themselves to benefit from future market shifts, whether that means re‑entering the market with a new product line, partnering on a joint‑venture in a different segment, or simply securing a steady revenue stream.

In the words of the Bloomberg editorial that accompanies the story, “Volkswagen and Rivian are not just selling a product; they are selling the promise of a future where EV technology is as fluid as the data that drives it.” The next few months will reveal whether the market responds favorably to this unprecedented move—and whether other automakers will follow suit in the race to turn technology into a tradable asset.