The venture, called "smart Automobile Co., Ltd." will see Mercedes and Geely contribute a total of 5.4 billion Chinese Yuan (roughly $780 million) to the initiative, which aims to expand Smart's EV-only portfolio with a new range of global products, slated for launch in 2022.

Given Mercedes' brand and heritage, it's unlikely that its own-brand lineup will become 100 percent electric any time soon, but the company's continued investment in electrification in other areas of its business, such as Smart, shows it's still going to great lengths to succeed in this area.