The company hopes the brand, which will go on sale in the UK in early December, will reinvigorate the entire denim market.
With Type 1, Levi's aims to strip the classic jean back to its core essentials.
The brand features exaggerated details, such as oversized rivets.
An ad campaign through Bartle Bogle Hegarty will break next spring across TV, cinema and outdoor.
The launch is hoped to inject new growth into Levi's, whose sales have now stabilised following a disastrous period in the late 90s. In September, it reported third-quarter sales in Europe grew by 15%.
Type 1's launch ties in with its 150th anniversary next year. Other plans include a European relaunch of 501s and its first girls-only store, in Paris.