Electric vehicle maker Rivian and Mercedes-Benz team up in Europe

Amazon-backed electric vehicle maker Rivian, which this year has struggled with supply chain problems, has turned to legacy carmaker Mercedes-Benz to make battery delivery vehicles in Europe.

The start-up, which has struggled with production in the US, will share costs on a factory with the German carmaker, giving it a production toehold in the world’s second-largest electric vehicle market.

The pair plan to build a facility at an existing Mercedes factory in central or eastern Europe to manufacture two new electric vans, one for each brand.

This marks the first international expansion for Rivian, which builds vans, pick-up trucks and sports utility vehicles in Illinois. The company in March halved production estimates for this year because of supply chain problems.

The Rivian van will be based on the current model, which will initially be sold in Europe. Mercedes-Benz will produce a new battery electric van at the plant as well.

“Together we will produce truly remarkable electric vans which will not only benefit our customers but the planet,” said Rivian founder and chief executive RJ Scaringe.

The timescale for the plant and vehicles has not been decided, but the facility is not likely to begin production until after 2025. Neither company detailed costs of the project.

Rivian plans to build a separate factory in Europe or the UK to manufacture its passenger vehicles, though has yet to make a final decision. Talks with the UK government, which previously offered the company a site near Bristol, are continuing.

The factory will carry two lines, one for each company, with plans for savings through joint purchasing and other synergies.

“We are sharing investment and technology because we also share the same strategic ambition: accelerating the electrification of the van market with sustainable and superior products,” said Mathias Geisen, head of Mercedes-Benz Vans.