Volkswagen has unveiled its highly anticipated ultra-affordable electric vehicle, the ID EVERY1, a compact four-door hatchback that will debut with software and architecture from Rivian, according to a source familiar with the new model.

The ID EVERY1 is slated to enter production in 2027, with a starting price of 20,000 euros ($21,500). Additionally, a second electric vehicle, the ID.2all, priced in the 25,000 euro range, is expected to be available in 2026. Both vehicles are part of Volkswagen’s new lineup of electric urban front-wheel-drive cars, developed under the “Brand Group Core” that comprises the volume brands within the VW Group, and are specifically designed for the European market.

Notably, the ID EVERY1 will be the first model to feature Rivian’s vehicle architecture and software, resulting from a $5.8 billion joint venture between Volkswagen and the US-based electric vehicle manufacturer. In contrast, the ID.2all is built on the E3 1.1 architecture and software developed by VW’s software unit, Cariad.

Although Volkswagen did not explicitly mention Rivian during the unveiling, there were several references to next-generation software. Kai Grünitz, a member of the Volkswagen Brand Board of Management responsible for technical development, highlighted that the ID EVERY1 would be the first model in the entire VW Group to utilize a “fundamentally new, particularly powerful software architecture.”

This new architecture will enable the ID EVERY1 to be equipped with new features throughout its lifespan, allowing customers to personalize their vehicle even after purchase. As Grünitz explained, “the future entry-level Volkswagen can be individually adapted to customer needs” due to its advanced software capabilities.

Sources who wished to remain anonymous confirmed to TechCrunch that Rivian’s software will indeed be integrated into the ID EVERY1 electric vehicle. TechCrunch has reached out to both Rivian and Volkswagen for comment and will update the article if a response is received.

The joint venture between Rivian and Volkswagen is expected to provide numerous benefits, including a much-needed influx of capital for Rivian and the opportunity to diversify its business. Meanwhile, the VW Group will gain access to next-generation electrical architecture and software for electric vehicles, enhancing its competitiveness in the market. Both companies have stated that the partnership will reduce development costs and facilitate the rapid scaling of new technologies.

The 50-50 joint venture, known as Rivian and Volkswagen Group Technologies, will be led by co-CEOs, including Rivian’s head of software, Wassym Bensaid, and Volkswagen Group’s chief technical engineer, Carsten Helbing. The team will be initially based in Palo Alto, California, with three additional sites under development in North America and Europe.

Thomas Schäfer, CEO of the Volkswagen Passenger Cars brand and head of the Brand Group Core, stated, “The ID. EVERY1 represents the last piece of the puzzle on our way to the widest model selection in the volume segment. We will then offer every customer the right car with the right drive system — including affordable all-electric entry-level mobility. Our goal is to be the world’s technologically leading high-volume manufacturer by 2030. And as a brand for everyone — just as you would expect from Volkswagen.”

Currently, the Volkswagen ID EVERY1 is in the concept phase, with limited details available. The concept vehicle boasts a top speed of 130 km/h (80 miles per hour) and is powered by a newly developed electric drive motor with 70 kW. Volkswagen claims the ID EVERY1 will have a range of at least 250 kilometers (150 miles). The vehicle is compact, yet larger than VW’s former UP! model, offering sufficient space for four people and a luggage compartment volume of 305 liters.