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German automaker, Mercedes-Benz (OTC:DDAIF) announced on Monday that they will invest more than €1 billion (€1 = $1.05) in the company’s electric van division to build its first electric-only vans plant in Jawor, Poland. The plan is currently pending approval of conditions such as the sign-off of subsidies for its investment.
The company has signed a declaration of intent with the Polish government and other partners to add the van factory to its Jawor site where it makes combustion engines and batteries for Mercedes-Benz Cars.
The plant will be the fourth in Mercedes-Benz´s European van production network. However, Mercedes said in a statement that a possible expansion of the plant through a joint venture with U.S. electric van maker Rivian Automotive Inc (NASDAQ:RIVN) will no longer take place because the U.S. automaker has reprioritized its planned projects, confirming a statement by Rivian.
The companies had said in September they were planning a joint venture to produce electric vans in a factory in Poland, Hungary or Romania within the next few years, but Rivian said on Monday it would focus on its consumer business and existing commercial business.
Shares of RIVN are down 3.99% in mid-day trading on Monday.
