Back in October, Navistar took to Capitol Hill to showcase an all-electric vehicle designed in part with a $39-million federal grant from the Dept. of Energy. Today, the Navistar announced that its partner in developing that prototype, Modec Limited of Coventry, England, has formally joined with the truck OEM to form Navistar-Modec EV Alliance, which will produce electric trucks in the U.S.

“The commercial market is ready for electric vehicle technology to advance,” said Dee Kapur, president, Navistar Truck Group. “This vehicle is road ready for fleets to implement as a practical solution for many applications. It has an excellent, eye-catching design that says, ‘This is something different, the future is now.’ We see this as an ideal vehicle for U.S. urban markets. We already have interested customers, including some of the most respected names in the industry.”

In 2010, according to Navistar, the venture will produce about 400 of the Class 2-3 trucks at the former Monaco coach factory in Elkhart County, IN. The company said from there it hopes to produce thousands more in the future as demand increases.

The trucks are intended for urban applications with a range of 100 mi. on a single charge. Navistar subsidiary Workhorse Custom Chassis will assist in the design of the vehicles.

“We are very pleased to partner with Navistar in this new venture,” said Bill Gillespie, Modec CEO. “Navistar’s commercial truck market leadership, coupled with their proven track record of clean vehicle technology, makes them the perfect partner.”