What happened
Shares of Rivian Automotive (RIVN 2.88%) rose sharply Thursday morning after the widely followed EV maker announced a new partnership. The stock popped nearly 10%, and remained up 6.9% as of 10:18 a.m. ET today.
So what
Rivian said it has signed a memorandum of understanding with the Mercedes-Benz Van division of Daimler AG for a new joint venture to manufacture electric vans. The vehicles will be tailored for individual customers similar to the electric delivery vans (EDVs) Rivian currently produces for Amazon.
Building a Rivian electric delivery van. Image source: Rivian Automotive.
Now what
The large electric vans will be manufactured in Europe for both Mercedes-Benz and Rivian customers. While the plan is to build a new factory for the venture, it will leverage an existing Mercedes-Benz site in Europe, according to a joint statement from the companies.
Production is planned to begin "in a few years" with two types of vans based on the electric-only platform of Mercedes-Benz Vans and the Rivian Light Van (RLV) platform. Mathias Geisen, head of Mercedes-Benz Vans, said in a statement, "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."
NASDAQ: RIVN
Key Data Points
The partnership is an expansion for Rivian's van business. It currently produces its EDV for use by Amazon in last-mile deliveries. Rivian makes those vans at its Illinois factory and expects to supply up to 100,000 to the e-commerce giant through this decade.
Rivian investors are cheering today for the company's new plans for a next phase of growth in its commercial product. Partnering with a global automotive leader like Mercedes-Benz also gives added credibility to the EV start-up.
