New plant will supply EVs for North American market.

Volkswagen has broken ground on a new electric vehicle (EV) production facility in Chattanooga, Tennessee. With plans to begin production of vehicles in 2022, this new plant will be Volkswagen’s North American assembly base for electric vehicles.

“This is a big, big moment for this company,” said Scott Keogh, President and CEO of Volkswagen Group of America. “Electric vehicles are the future of mobility and Volkswagen will build them for millions, not just millionaires.”

Volkswagen began long-range EV production earlier this month in Germany, and will then roll out assembly worldwide, including in China, in 2020 and in the German cities of Emden and Hanover by 2022. The Chattanooga site will be VW’s North American hub for EV manufacturing.

The company also announced plans to build a 198,000–square-foot plant for the assembly of battery packs for EVs at the Chattanooga site.