Rivian and Mercedes-Benz team up to produce commercial EVs.
Key details
The newest electric-vehicle (EV) innovation is in the commercial sector.
Rivian Automotive and Mercedes-Benz have partnered to build all-electric commercial vehicles for both companies.
The project between Rivian, an American EV automaker and automotive technology company, and the luxury-car leader Mercedes-Benz will produce two large electric vans. One based on Mercedes architecture and another based on the Rivian Light Van (RLV) platform. Rivian isn’t yet making the RLV, reports Barron’s.
“We believe that together we will produce truly remarkable electric vans which will not only benefit our customers, but the planet,” says Rivian CEO RJ Scaringe.
Why it’s important
Mercedes has been making commercial vans for decades, between its experience and Rivian’s EV background, the partnership looks to be a big success.
More than half of car buyers worldwide want an EV. The number of people wanting electric vehicles (EV) has hit a worldwide tipping point.
The latest EY Mobility Consumer Index shows that 52% of people looking to buy a car want to buy an EV. This is the first time the number has exceeded 50%, representing a rise of 11 percentage points since last year.
Not only are EVs wanted for personal use, but for business use as well. Many businesses are becoming more green minded and looking for ways to cut back on emissions. EVs are a perfect way to do that.
This commercial partnership between the two brands will open up EVs to a variety of businesses that want to make a difference and go green.
One big company has already set an order with Rivian for commercial EVs—Amazon.
Amazon has taken the initiative to go green and one step they are taking is getting electric delivery vans. The company made an order for 100,000 vans from Rivian. Amazon owns about 17% of Rivian stock.
Rivian has plans to begin selling commercial vehicles to other companies in 2023.
Rivian shares have risen about 11% since the announcement yesterday.