Volkswagen Group has opted to boost its planned investment in an announced joint venture with electric vehicle maker Rivian Automotive, which will begin operations on Wednesday.

The firms announced in a joint press release on November 12 that the transaction had grown to $5.8 billion, up from an initial investment of up to $5 billion, with the first VW vehicles using Rivian's software and electrical architecture arriving as early as 2027.

Rivian shares rose more than 6% in after-hours trade. The increase in investment was a result of the companies moving ahead some potential future money from VW, as well as changes in the deal's structure, including equity participation, authorities said.

Oliver Blume, CEO of Volkswagen, revealed at a press conference on November 12 that the German manufacturer plans to deploy Rivian's innovations across a wide range of price points, worldwide markets, and brands.

According to Blume, Rivian's software would be integrated first with the Volkswagen brand, then with Audi and VW's future Scout brand. He also indicated that "sports cars" could be featured, but did not name any specific brands. Volkswagen's brands include Bentley, Porsche, and Lamborghini, among others.

"We're thrilled to see our technology being integrated in vehicles outside of Rivian, and we're excited for the future," Rivian CEO RJ Scaringe said in a statement.

Furthermore, Scaringe and Blume stated that any additional initiatives, such as battery modules, collaborative vehicle manufacture, or the sharing of other hardware components, must be in addition to the already announced joint venture agreement. The joint venture is called Rivian and VW Group Technology, and it is anticipated to close in the fourth quarter, according to the CNBC story.

Volkswagen had already made an initial commitment of $1 billion.

Volkswagen has already provided a $1 billion investment in the form of a convertible note, the businesses said. VW will invest approximately $1.3 billion in the joint venture "as consideration for background intellectual property licenses and a 50 percent equity stake in the joint venture."

The remaining investment of up to $3.5 billion is projected to arrive by 2027 "in the form of equity, convertible notes, and debt at future dates and based on clearly defined milestones," the companies say. The joint venture agreement was first announced in June, as Rivian looked to generate additional financing as it unveiled revised models and began manufacture of new "R2" vehicles in early 2026.

Scaringe previously stated that Volkswagen's capital is expected to see the company through the production ramp-up of its smaller R2 SUVs at its plant in Normal, Illinois, beginning in 2026, as well as production of a midsize EV platform at a plant in Georgia, where Rivian halted construction earlier this year.

Wassym Bensaid, Chief Software Officer of Rivian, and Carsten Helbing, Chief Technical Engineer at Volkswagen Group, will lead the joint venture.

The companies announced that developers and software engineers from both companies will join the joint venture. Teams will initially be situated in Palo Alto, California, with three additional facilities planned for North America and Europe. Market participants and investors will closely monitor these changes since they will allow them to make better and more informed investment decisions.