Volkswagen’s investment in Rivian spurs surge in related Korean stocks

[Photo by Yonhap]

Shares of South Korean companies associated with Rivian surged to their daily upper limits Wednesday morning, following the overnight announcement of Volkswagen’s substantial investment in the American electric vehicle (EV) manufacturer.

As of 9:22 a.m., Daewon Chemical was trading at 1,852 won ($1.35), up 346 won or 22.97 percent, from the previous day. The stock had initially risen to 1,957 won shortly after the opening bell, hitting the daily price limit. On the Kosdaq market, Ecocab surged 620 won (29.95 percent) to 2,690 won, also reaching its price limit.

These automotive parts suppliers provide components to Rivian, thereby experiencing significant investor interest and price appreciation following the news.

Volkswagen announced that it would invest 7 trillion won in Rivian by 2026 to secure a stake in the company and establish a joint venture focused on developing next-generation battery-powered vehicles.

Rivian’s stock closed up 8.6 percent during regular trading hours on the New York Stock Exchange and soared over 50 percent in after-hours trading in response to the announcement.