BERLIN — Mercedes-Benz Vans and Rivian have signed a memorandum of understanding for a three way partnership to supply electrical vans in a manufacturing unit in central or jap Europe throughout the subsequent few years, Mercedes-Benz Vans stated on Thursday.

The businesses are planning methods to supply each of their fashions on a joint manufacturing line, Mercedes stated, including it was additionally growing a brand new all-electric van structure of its personal known as VAN.EA.

The 2 firms will make two massive vans — one based mostly on Mercedes’ VAN.EA platform and the opposite based mostly on the Rivian Mild Van electrical platform — on the plant, the assertion stated, with out disclosing the exact location.

Mercedes additionally stated it might restructure German factories that presently construct massive Sprinter vans to offset larger prices for electrical autos.

It’s going to make investments 400 tens of millions euros in its manufacturing unit in Dusseldorf as a part of the transition. Mercedes additionally stated it might add “a longtime plant” from the Mercedes manufacturing community based mostly in central and jap Europe as a 3rd van manufacturing web site, becoming a member of Dusseldorf and Ludwigsfelde, Germany.

The Mercedes plant in Kecskemet, Hungary, is prone to be on the shortlist for the joint manufacturing unit.

The plant, opened in 2012, presently makes entry Mercedes vehicles equivalent to A-Class, B-Class and C-Class fashions. The producer plans to decrease the manufacturing of such autos as a part of its technique of shifting to higher-end fashions.

The VAN.EA platform will likely be used for full-electric medium and huge industrial vans, Mercedes stated Thursday within the launch. By 2025, all newly launched Mercedes van fashions will likely be solely electrical. 

Mercedes additionally has a partnership with Renault, which builds its Citan and T-Class compact vans as variations of its Kangoo. The vans even have a full-electric possibility. Mercedes’ medium van, the Vito, additionally has an electrical model.

Bloomberg and Reuters contributed to this report

The collaboration with Mercedes comes at a vital time for Rivian. The electrical van and journey automobile firm has struggled to ramp up manufacturing at its Illinois manufacturing unit as provide chain disruptions and rising supplies costs compelled it to chop workers and delay product programmes.

Rivian shares are down practically 68 % for the 12 months to this point.

Sharing the prices of a European meeting plant with Mercedes ought to assist the startup, which burned by means of $1.2 billion within the second quarter, preserve money and save for its second U.S. meeting plant deliberate for 2025.

Rivian is in a crowded discipline of startups making an attempt to money in on demand for electrical industrial vans below stress from established automakers who’ve moved rapidly to counter the menace with electrical vans of their very own.

Ford Motor re-engineered its common gasoline-fueled Transit van to run on batteries, and now claims management within the U.S. electrical industrial van market with practically 4,000 electrical Transits delivered this 12 months.

Stellantis earlier this 12 months signed an settlement with Amazon to supply electrical supply vans. And Rivian has agreed to provide 100,000 electrical supply vans to Amazon by 2030.

Mercedes-Benz Vans stated in April its order books have been full however factories have been battling provide chain difficulties.