Ford Motor will build a new van range including a full-electric version at its factory in Craiova, Romania.
The gasoline and diesel versions of the van will go into production in 2023. The battery-powered model will follow in 2024, Ford said in a statement on Tuesday.
Ford said in February that its passenger lineup in Europe will become all-electric by 2030 and it expects two-thirds of commercial van sales to be all-electric or plug-in hybrid by the same date. The company has also said it will offer full-electric or plug-in hybrid versions of every model in its LCV range by 2024.
Craiova will be the third Ford factory in its Europe region to build an all-electric vehicle after plants in Germany and Turkey.
The company's first full-electric car will start production in Cologne, Germany, in 2023. It will be based on Volkswagen Group's MEB electric-car platform. The new small van is not part of Ford's partnership with VW.
Ford did not give any details of the van's size.
A source close to the company said the van will be small. This means it would likely replace the Ford Transit Courier, which is currently built at Ford's joint venture plant in Turkey.
A small electric van would compete with Renault's van version of the Zoe small hatchback and Dacia's cargo version of the Spring electric minicar.
Ford's version is expected to offer more load space.