Rivian has officially finalized a $1 billion loan from Volkswagen, featuring a fixed 6.03% interest rate over a 10-year term. Under the agreement, Rivian will not have to begin making payments until October 2028, providing financial flexibility during the production ramp-up of its R2 vehicle. To secure the loan, Rivian pledged its half-interest in the Rivian and Volkswagen Group Technologies joint venture, keeping its physical manufacturing plants and main assets free of encumbrance.

This funding is part of the initial joint venture agreement established in 2024. With this loan closed, Volkswagen has now delivered $5.3 billion of its total $5.8 billion investment commitment. The remaining $460 million will be provided as equity by January 2028, completing Volkswagen's full financial obligation under the partnership.