French shipping company CMA CGM SA is planning to join Renault SA and Volvo AB in a new electric van venture as the French carmaker seeks to take on rivals like Stellantis NV. 

The partners will invest a total of €720 million ($759 million) to build a range of vans and offer related services, they said Friday. Renault and truckmaker Volvo will initially hold equal stakes in the company while CMA CGM has signed a letter of intent. 

Production will start in 2026 with the business set to be located in France to serve urban logistics demand in a market the partners expect to triple by 2030. Bloomberg reported in February that Renault and Volvo were in talks on the electric van collaboration, with a model known as the FlexEVan. 

Renault said earlier this year it would share the FlexEVan with partner Nissan Motor Co. in Europe, touting the project as one of several they will continue to share as part of their reshaped alliance. The hard-won deal with Nissan has opened the way for Renault to work with new partners to better tackle the EV shift, including China’s Zhejiang Geely Holding Group Co. and Qualcomm Inc. 

CMA CGM, led by Chief Executive Officer Rodolphe Saade, operates a fleet of nearly 600 vessels and is developing a sprawling empire in France, spending billions on transport and logistics assets as well as a stake in Air France-KLM as part of an air-cargo alliance with France’s flag carrier.

The new battery van models will add to Renault’s light commercial vehicle lineup, which includes the Kangoo and sold over 330,000 units last year. The vehicles will target urban delivery needs with full connectivity for real-time fleet management, Chief Executive Officer Luca de Meo said during the company’s capital markets day in November.

Separately, Renault also has a joint venture with fuel-cell maker Plug Power Inc., called Hyvia, to build hydrogen-powered vans. 

Stellantis, which sells vans under the Citroen, Fiat, Peugeot and Opel-Vauxhall brands, last year delivered over 500,000 light commercial vehicles in Europe. The Renault rival is due to hold a Stellantis Commercial Vehicles Ambition Day in Italy on Oct. 18.