Israeli Startup To Supply Volkswagen With Lidar In ‘$4B Deal’
Israeli lidar startup Innoviz struck a deal reported to be worth $4 billion with Volkswagen to supply advanced ADAS (advanced driver-assistance system) features for its next generation of automated vehicles.
The deal will run for eight years starting “mid-decade”, when the first Innoviz-equipped Volkswagen group vehicles are expected to ship. Innoviz expects to supply units for between 5 million and 8 million Volkswagen Group vehicles in total.
Innoviz develops lidar remote-sensing solutions for fully autonomous vehicles. Lidar is an acronym for “light detection and ranging” and it is used to calculate the ranges of various surroundings by targeting an object or a surface with a laser and measuring the time for the reflected light to return to the receiver.
Innoviz’s flagship lidar systems render highly accurate real-time 3D images of the vehicle’s surroundings, providing enhanced perception capabilities that exceed that of human drivers.
Cariad, a company that supplies automotive software and technology for Volkswagen, selected Innoviz after more than two years of testing and due diligence of its software. It will supply the InnovizTWO next-generation lidar sensor and perception software to all of its vehicles with automated driving capabilities.
“We are thrilled to work with the Cariad team and be a supplier of lidar sensors and perception software to support safe mobility for vehicles launching from the middle of the decade,” said Innoviz CEO and Co-Founder, Omer Keilaf. “Cariad is a leading player in the transformation of the whole automotive space. We are proud to be part of their mission.”
The deal value as estimated by Innoviz is more than seven times the size of the company’s market value of just over $500 million.
The partnership with Volkswagen is Innoviz’s third design win with a Tier 1 supplier. In April, BMW revealed that Innoviz’s lidar would be in its 2023 electric vehicles, and last year, Innoviz was selected by another unnamed Tier 1 auto supplier for its autonomous shuttle program. The company was founded in 2016.