The winter testing phase has been finalized for the VW ID.EVERY1, marking the inaugural vehicle from a collaboration between Rivian and Volkswagen Group that incorporates the EV manufacturer’s software and electrical framework. This achievement not only signifies a step closer to delivering this vehicle to consumers; it also triggers an additional $1 billion investment from Volkswagen Group into Rivian.

Approximately $750 million will be in the form of an equity investment. The remaining $250 million may either be equity or convertible debt, contingent on the prototypes that Volkswagen Group supplied to Rivian for evaluation. (The specifics were not immediately clarified by the companies.)

The German automotive powerhouse has previously injected over $3 billion into Rivian as part of this joint endeavor. Furthermore, additional funds are on the horizon. Starting in October, Rivian will have the opportunity to borrow up to $1 billion from Volkswagen Group. After the initial vehicle utilizing the joint venture’s technology is made available for purchase, Rivian will receive an extra $460 million in equity investment from Volkswagen. Overall, this agreement could potentially amount to as much as $5.8 billion for Rivian.

The payment for reaching the winter testing milestone has been processed just a few months ahead of Rivian commencing sales of the R2 SUV, which founder and CEO RJ Scaringe has described as “perhaps the most significant product we’ve launched thus far.” Rivian is relying on a rapid increase in R2 production and sales.