06:30 AM EST, 11/13/2024 (MT Newswires) -- Rivian Automotive ( RIVN ) shares soared more than 13% in premarket activity Wednesday, a day after it revealed a joint venture with Volkswagen Group a deal size of up to $5.8 billion.

The companies said the JV, named Rivian and VW Group Technology, will likely come on stream Nov. 13, and will aim to create software and electronics architectures and scale electric vehicle platforms.

The joint venture will aim to use the existing Rivian electrical architecture and software technology stack, enabling the launch of Rivian's R2 in H1 of 2026, while supporting the expected introduction of the first models from Volkswagen as soon as 2027.

The JV will scale the technology across price points and international markets, the duo said.

The teams will initially be based in Palo Alto, California, while three more sites are under development in North America and Europe, according to the statement.