The new plant will jointly add nearly 5700 workers to the payrolls of the respective carmakers, with the AU$1.45 billion cost of establishing the plant to be shared equally.
Once full operation can be realised in around 2021, the plant - adjacent to an existing Nissan plant in Mexico - will be capable of producing up to 300,000 vehicles annually.
Development of future Infiniti models for 2017 will be a focus for the new plant, with the Japanese carmaker aiming to boost its share of the global luxury market to around 10 percent.
Production of Mercedes-Benz models is scheduled to follow, ahead of the 2018 model year.
“Joint development of compact premium vehicles and joint production in Aguascalientes together represent one of the largest projects between the Renault-Nissan Alliance and Daimler,” Renault-Nissan CEO Carlos Ghosn said.
“It also shows how our collaboration, which began in Europe, has become global in scope.”
Daimler CEO Dieter Zetsche added that the new plant is a “major milestone”, which signified the joint venture was elevating its partnership to “the next level”.
Despite a joint development stage, each party stresses that finished Infiniti and Mercedes-Benz products will be clearly different in terms of design and specifications.