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.

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

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,