Porsche's board on Monday agreed to increase the company's stake in Rimac to 24%, up from the current 15%.
The transaction will cost Porsche 70 million euros (approximately $83 million) and the increased stake won't exercise a controlling influence. Porsche first invested in Rimac in 2018 and previously increased its stake in 2019.
Other key investors in the Croatian electric-vehicle technology company include Hyundai Motor Group, as well as its own CEO and founder, Mate Rimac, who has the biggest stake.
Porsche hasn't ruled out further increasing its stake. There have been rumors since last September that Porsche's stake could be increased to 49% in a deal that would see fellow Volkswagen Group brand Bugatti transferred to Rimac. While there was no mention of Bugatti in Monday's announcement, Porsche CEO Oliver Blume only in February said Bugatti and Rimac were a good fit.
However, comments made by Rimac on Monday suggest that Porsche and Rimac may prefer to stay independent.
"With many car manufacturers across the world being Rimac customers, it is important, both for Rimac and Porsche, that we remain an entirely independent business," he said.
Rimac is arguably best known for its Concept_One battery-electric hypercar which will soon spawn a successor code-named the C_Two. However, the company's main business is supplying EV technology such as battery and drive systems to other firms, including Porsche in the near future. Porsche has confirmed that it's placed its first order for components with Rimac.
“Mate Rimac and his team are important partners, especially when it comes to supporting us in the development of components,” Lutz Meschke, head of finance and IT at Porsche, said in a statement. “Rimac is well on its way to becoming a Tier 1 supplier for Porsche and other manufacturers in the high-tech segment.”
But Porsche isn't the only side benefiting from the growing ties it has with Rimac. Rimac also benefits from Porsche's production and product development expertise.
The latest announcement comes just weeks after it was reported that VW Group is considering a Porsche spinoff. According to reports out of Germany, VW Group is considering floating up to 25% of Porsche to raise funds for its extensive EV and software development programs.