Rivian Automotive Inc. and Volkswagen have launched their upsized joint venture, joining forces with the goal of creating “cutting-edge” electric-vehicle technology.

The companies said the deal is now up to $5.8 billion, with the first VW models to use Rivian's software and electrical architecture arriving as early as 2027.

Shares of Rivian jumped over 15% after the EV maker announced a $5.8 billion investment from German automaker Volkswagen as part of their joint venture.

Analysts see the joint venture between VW and Rivian as shoring up many concerns about the U.S. EV maker's challenges.

Rivian and Volkswagen Group have finalized a multi-billion-dollar joint venture to develop software, paving the way to let the German auto giant leverage the EV startup's more technical chops in the coming years.

The new agreement, which builds on an earlier announcement, calls for the German automaker to invest $5.8 billion in Rivian, a maker of electric vehicles.

Rivian and Volkswagen made their joint venture official, with the German carmaker pledging a $5.8 investment in Rivian and 75% in shared development expenses

Volkswagen will invest up to $5.8 billion in Rivian stock and a joint venture—up from a $5 billion deal value envisaged when the collaboration was announced in June. Rivian stoc

The announcement lifts the veil on one of the largest automotive deals this year, providing more details on its goals, leadership and financial structure.

Volkswagen will invest up to $5.8bn into Rivian as part of a new joint venture that’ll see them both working extremely closely on their future electric cars. In short, it means Rivian can get a boatload of cash and Volkswagen’s scale to launch and evolve the R2 (pictured above) and other models.