Rivian Automotive Inc. (Nasdaq: RIVN) of Irvine said it’s teaming up with Mercedes-Benz Group AG to build a new European factory to produce electric vans for both companies, according to national reports.
The EV maker and Mercedes are in the midst of finalizing agreements and obtaining regulatory clearances. Their joint venture will establish a new factory in Poland, Hungary or Romania within the next few years.
The partnership will provide a significant production boost for Rivian, which has struggled to ramp up production at its Illinois factory due to supply chain disruptions and rising material costs. The challenges have resulted in staff layoffs and delays in product programs.
Following the announcement on Thursday, shares in Rivian rose 5.5% to $35.09 apiece and a $31 billion market cap.
