Volkswagen of The us will construct a manufacturing facility upcoming doorway to its U.S. automobile plant in Chattanooga to assemble battery packs for its impending line of battery electric powered autos, the automaker claimed Wednesday.

The announcement was built in conjunction with the groundbreaking ceremony for an $800 million growth of the Chattanooga plant to make it possible for the procedure to make EVs centered on Volkswagen’s world MEB electrical architecture. At this time, the plant builds the 3-row Atlas crossover, two-row Atlas Cross Activity crossover and Volkswagen Passat sedan.

About one,000 positions are anticipated to be included to the plant as a outcome of the $800 million financial investment, which will include things like an addition to the entire body store. Volkswagen will construct interior combustion motor autos and battery electric powered autos on the similar assembly line.

VW designs to start manufacturing of the ID4 compact EV crossover in Chattanooga in 2022. The ID4 is anticipated to go on sale in the U.S. late upcoming 12 months, but early manufacturing will be in Volkswagen’s plant in Zwickau, Germany.

The battery cells for the ID4 and subsequent EV autos assembled in Chattanooga will arrive from a newly built $1.7 billion SK Innovation plant beneath development in Commerce, Ga, northeast of Atlanta.

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