Innoviz has sealed a deal with the Volkswagen Group worth $4 billion to provide lidar sensors and perception software for self-driving vehicles and advanced driver-assistance systems (ADAS).

The company originally hinted at the partnership in May, when it said an agreement had been reached with a mystery automaker that would see its tech used across multiple car brands.

The VW Group portfolio currently consists of Volkswagen, Volkswagen Commercial Vehicles, Škoda, SEAT, CUPRA, Audi, Lamborghini, Bentley, Porsche and Ducati.

Innoviz will deal directly with Cariad, the VW Group’s software unit, to directly integrate its tech into vehicles from the various brands.

The partnership is the latest success for Innoviz, following a deal with BMW to supply lidar for the i7 electric sedan and another with an unnamed tier one automotive supplier to provide sensors for a new autonomous shuttle.

“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 marks another significant step for the VW Group, which has made major progress in recent months with its plans to deliver self-driving vehicles.

In May it was confirmed that VW would use Qualcomm’s system on a chip, from its Snapdragon Ride platform, alongside Cariad’s own standardized and scalable computer platform to deliver Level 4 automated driving, as defined by the Society of Automotive Engineers – where the car drives itself without the need for human intervention. The Qualcomm deal was reported to be worth $1 billion.

And in July it was announced that the VW Group was given the go-ahead to jointly develop automated driving technology with Bosch by the German Cartel office, the Bundeskartellamt.

It’s not yet clear which cars from which brands will benefit from the InnovizTwo Lidar, although one possible candidate is the VW Trinity, a Tesla-rivaling sedan that the company claims will “set new standards in autonomous driving, electrification and the digitalization of mobility.” 

The InnovizTwo Lidar is a solid-state, forward-facing device that offers high-quality resolution and a detection range of up to 984 feet. 

Innoviz claims it will help to solve a significant bottleneck in the industry by allowing automakers to introduce cost-effective Level 2+ functionality with hardware that supports Level 3 and Level 4 on launch.

Confirmation of the deal gives Innoviz an order book worth around $6.6 billion.