Amazon-Backed Rivian And Mercedes-Benz Are Partnering To Make Electric Vans

Rivian, the electric vehicle startup backed by Amazon, and Mercedes-Benz are forming a joint venture to make battery- powered vans.

Both Mercedes-Benz and Rivian will sell large electric vans under their brands. A factory for Mercedes-Benz will be established in Europe within a few years. The electric vans produced by both companies will be the focus of the factory's work.

The cost and timing of the venture weren't shared.

The leader of the Mercedes-Benz Van unit said in an email that they are sharing investments and technology in order to accelerate the electrification of the van market.

Rivian, which already supplies electric delivery vans to Amazon, is working to scale up production due to supply chain disruptions. The best-funded automotive startup in U.S. history is the Irvine, California-based company. After going public last year, it became one of the world's most valuable automakers, but a slow production start triggered a stock selloff.

Rivian's Normal, Illinois, plant has improved production of pickup trucks and SUVs this year. 25,000 vehicles are expected to be built this year. In December of 2021, it was announced that it will build a second plant in Georgia that will be able to produce 400,000 vehicles a year.

New incentives for buying electric vehicles will benefit Rivian, according to the company's CEO.

He said in the company's earnings call that theRivian Commercial Van platform has been developed for a wide range of applications.

Rivian shares increased in Thursday's trading.