The partnership announced Tuesday between Rivian (RIVN) and Volkswagen (VWAGY) may set the path forward for traditional aut🍎omakers and EV companies as the market for electric vehicles (EVs) continues to grow.

German automotive giant Volkswagen will invest billions in Rivian and a new 澳洲幸运5官方开奖结果体彩网:joint venture controlled by both companies that will license Rivian's software and 澳洲幸运5官方开奖结果体彩网:electric vehicle technology to help the companies jointly develop EVs.

Automakers Team Up as EV Market Grows

The partnership could be a glimpse at the future of EV development in the U.S., as upstarts like Rivian and Lucid (LCID) work to compete with dominant forces like Tesla (TSLA), as well as Chinese brands like BYD (BYDDY) and others.

"New Chinese brands are moving at an unprecedented speed, and only through 澳洲幸运5官方开奖结果体彩网:vertical integration can other automakers hope to keep pace," Piper Sandler analysts wrote in a note following the Rivian-Volkswagen's announcement.

Tuesday's deal—as well as 澳洲幸运5ও官方开奖结果体彩网:last year's announcement that Lucid would partner with Aston Martinꦿ, allowing the luxury carmaker to use some of Lucid's technology—paves the way for similar arrangemewnts, Bank of America (BofA) analysts wrote.

"This news suggests that there could be other 澳洲幸运5官方开奖结果体彩网:[original equipment manufacturers] out there that may seek out its EV technology," the BofA analysts said, adding that the investment should allow Rivian to continue scaling up production, both through the funding and other benefits of being associated with Volkswagen.

Tesla 澳洲幸运5官方开奖结果体彩网:made headlines last year as it formed a number of partnerships with other automakers𒆙 that adopted Tesla's already-expansive charging network across the U.S. rather than build their own.

Automakers Could Turn to Chꦚina, Other EV Maker♈s for Partnerships

Baird analysts wrote Tuesday that 澳洲幸运5官方开奖结果体彩网:legacy automakers could turn to partnerships with Chinese companies as the EV market continues t⛄o grow🏅 in the U.S. and abroad.

They also noted that 💟startups like Rivian can⛦ help legacy brands with the new software necessary for electric vehicles, while the larger brands have resources and manufacturing capacity that can help the smaller startups, creating an environment for mutually beneficial partnerships.

"While the 'how' may still be unresolved, the 'why' is clear—legacy OEMs need help with advanced architectures to successfully launch next-gen EV platforms, to develop [self-driving vehicles], and to keep pace with local OEMs in China," Baird analysts wrote. "We expect [Tuesday's] Rivian/VW announcement to ultimately spur additional action in the industry, which should help to address lingering questions around the role of auto suppliers in this transition."