Mercedes-Benz and Rivian Partner on European Electric Van Plant

Mercedes-Benz and Rivian signed a memorandum of understanding Thursday for the joint production of electric vans in Europe.

This is the first step toward a planned manufacturing joint venture that will produce "custom-built large electric vans" for both Mercedes and Rebian, the companies said in a joint press release.

The agreement includes plans for a new European plant to manufacture electric vans for both Mercedes and Rivian. The plant will be located on an existing Mercedes site in Central or Eastern Europe, but will produce only EVs, the companies said.

Since the vans will use each company's platform, the joint venture appears to be limited to manufacturing and not vehicle development. One will be based on the Mercedes Van.EA platform, which is scheduled for launch in 2025, while the other will be based on the second-generation Rivian Light Van (RLV) platform. However, further collaborations will also be considered, the companies said. The joint venture will make Rivian the first manufacturing site in Europe, which is suggested for 2021.

Mercedes currently sells electric versions of its existing vans in Europe, including the eSprinter, eVito Panel Van cargo van, eVito Touring and EQV passenger van; EQT and eCitan models are also in the pipeline, and Mercedes will offer electric versions of each van model in Europe will offer an electric version of the EQT and eCitan.

Meanwhile, Rivian is working to offer an electric van for Amazon, which will share a platform with Rivian's R1T pickup truck and R1S SUV, with body and other components designed with Amazon's input, for a first release in 2020. E-commerce giant Amazon aims to have 100,000 electric delivery vans on the road by 2030.

Mercedes is assembling Sprinter vans for the U.S. market in South Carolina and plans to begin production of its next-generation eSprinter there in 2023. Mercedes also recently streamlined its U.S. van lineup by discontinuing Metris. It is unclear whether the joint venture will produce vehicles for the U.S. market.