Volkswagen of America has today marked the start of construction for its electric vehicle production facility. The Chattanooga site, where production begins in 2022, will be Volkswagen's North American assembly base for electric vehicles on the Modular Electric Drive Matrix (MEB). The company also announced it intends to build a plant for the assembly of battery packs for EVs at the Chattanooga site.

“This is a big, big moment for this company,” said Scott Keogh, president and CEO of Volkswagen Group of America. “Expanding local production sets the foundation for our sustainable growth in the U.S. Electric vehicles are the future of mobility and Volkswagen will build them for millions of people. "

Volkswagen began long-range EV production of ID.3 on November 4 in Zwickau, Germany, and will then roll out assembly worldwide, including in Anting and Foshan, in China, in 2020. By 2022, MEB vehicles are to be produced at eight locations on three continents. The Chattanooga site will be VW's North-American hub for EV manufacturing.

Volkswagen’s investment of about $800 million in the Chattanooga facility will require the addition of about 1,000 jobs. Production is set to begin in Chattanooga in 2022. The first model will be a SUV of the ID. family.

The expansion of the plant includes a 564,000-square-foot addition to the body shop. The company also announced it intends to build a plant for the assembly of battery packs for EVs at the Chattanooga site.

Volkswagen currently builds the midsize Atlas SUV and the Passat sedan at the Chattanooga factory.