Mercedes-Benz Vans, Rivian Plan Battery-Electric Van JV

With a memorandum of understanding in place, Mercedes‑Benz Vans plans to team with Rivian, the fledgling builder of all-electric pickup trucks, SUVs and delivery vans, to build a manufacturing plant.

The strategic partnership envisioned by the MoU would enable the two companies to establish a joint-venture manufacturing company to operate a factory in Europe producing large electric vans for both Mercedes‑Benz Vans and Rivian, starting within a “few years,” the companies say in a joint statement.

The objective is to create an all-new, electric-only production facility leveraging an existing Mercedes‑Benz site in Central or Eastern Europe, according to the companies.

MB-Rivian logos

With the new eCitan and the upcoming EQT, the van portfolio will soon be completely electrified. The next-generation eSprinter will be launched in 2023.

“I am delighted that as part of this transformation we are now joining forces with Rivian – a highly dynamic and inspiring partner with a strong technology position,” notes Mathias Geisen, head of Mercedes-Benz Vans.

“We are sharing investments and technology because we also share the same strategic ambition: accelerating the electrification of the van market with sustainable and superior products for our customers,” he adds. “From 2025 onwards, all vans based on our new architecture VAN.EA will be electric-only.”

For Rivian, the partnership with Mercedes-Benz vans comes at a critical time.

Rivian says it lost $1.7 billion in the second quarter as it struggled to ramp up production at its plant in Normal, IL. The company’s successful IPO last November left the company sitting on substantial cash reserves of $15.5 billion. But Rivian stock is now trading at about $37 per share, well short of its 52-week high of $179, which reflects some skepticism around the company’s ambitious plans.

Rivian CEO RJ Scaringe says he still expects the company to build 25,000 vehicles this year. It also is shipping electric vans to Amazon, which owns 18% of the BEV maker and has ordered 100,000 of its delivery vans (pictured, below). However, Ford, an early investor in Rivian, has dropped out of its partnership with the start-up.

Rivian Amazon van (Amazon)

“We’re delighted to be partnering with Mercedes‑Benz on this project. Mercedes‑Benz is one of the world’s best-known and respected automotive companies, and we believe that together we will produce truly remarkable electric vans which will not only benefit our customers, but the planet,” Scaringe adds.

Rivian says its goal is to build a brand and product portfolio with “maximum impact” in the shift to carbon-neutral transportation. The R1T pickup, R1S SUV and last-mile Electric Delivery Van are Rivian’s first vehicles in the consumer and commercial space.

Not every automotive MoU results in a four-wheeled product. The proposed deal between Mercedes-Benz Vans and Rivian is, “Subject to the parties entering into final binding agreements and to obtaining the relevant regulatory clearances.”

The companies, however, say they envision production-optimized vehicle designs for efficient manufacturing on common assembly lines. They will aim to produce two large vans, one based on VAN.EA, the electric-only platform of Mercedes‑Benz Vans, and the other based on the second-generation Rivian Light Van platform.

By working together, the companies say they will be able to operate cost-effectively to help make the vans affordable for commercial customers driven by total cost of ownership.