Volkswagen Group (VW) and Tesla rival Rivian have launched a joint venture, with the German car giant increasing its investment in the partnership.
The two companies said the deal is now worth $5.8bn (£4.55bn) - compared to VW's original promise of $5bn.
Shares in the US electric vehicle (EV) maker jumped more than 9% in after-market trading, the BBC reported.
The deal will allow the companies to share important technologies at a time of slowing global demand for electric cars and increased competition from Chinese rivals.
The joint venture provides Rivian with an important source of funding as it prepares to launch the R2 model next year, a sporty SUV that is smaller and more affordable than current offerings.
VW will be able to use Rivian's technology in its own range of cars.
The first VW models equipped with Rivian technology are expected to be available to customers as early as 2027.
In addition to SUVs, Rivian also manufactures electric delivery vans, which it mainly supplies to online shopping giant Amazon, its largest shareholder.
Amazon has ordered 100,000 cars to be delivered by the end of the decade. | BGNES
