Volkswagen originally promised a $5 bn deal to collaborate on software and architecture, but announced it was upping its stake this week

Volkswagen AG raised investment plans in Rivian Automotive Inc. by $800 million, signaling its commitment to the US partner even as electric-vehicle demand softens and the incoming Trump administration threatens to curtail supportive policies.

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

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Volkswagen raised its planned investment in Rivian to $5.8 billion. But Trump administration is unlikely to bode well for EV manufacturers.

VW's capital to Rivian isn't guaranteed, and neither is the success of the joint venture. Major automotive tie-ups don't always result in long-term successes.

Rivian and VW's joint venture will be used to produce Rivian R2s and VW's Scout EVs.The Latest Tech News, Delivered to Your Inbox

The two companies say the deal is now worth $5.8bn (£4.55bn) - up from an initial pledge from VW of $5bn. Shares in the US electric vehicle (EV) maker jumped more than 9% in after-hours trading following the announcement.

The joint venture plans to use Irvine, California-based Rivian's existing technology to launch the company's R2 model in 2026. Rivian initially planned to manufacture this model in Georgia, before it paused construction of the company's second plant in March.

Rivian (RIVN) is losing over $1B per quarter, or $30K-$40K on each truck it sells, with current volumes not enough to sustain its spend rate. Unless it acted quickly, bankruptcy could have been in the cards,