Volkswagen Group raised its investment in Rivian by 16% to $5.8 billion, the two automakers said on Tuesday, as the companies kick off their planned joint venture to develop electric vehicle architecture and software.

By investing $5.8 billion in electric vehicle pioneer Rivian, Volkwagen hoped the startup’s expertise would improve its EV presence as well as generate profits. However, Rivian’s $80,000 trucks have proved to create low consumer demand,

Analysts see the joint venture between VW and Rivian as shoring up many concerns about the U.S. EV maker's challenges.