| 3:47 PM EST

VW to Add Battery Production in Tennessee

Volkswagen AG plans to build a 198,000-sq-ft electric-car battery plant adjacent to its vehicle manufacturing plant in Chattanooga, Tenn.
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Volkswagen AG plans to build a 198,000-sq-ft battery plant adjacent to the carmaker’s vehicle manufacturing plant in Chattanooga, Tenn.

SK innovation Co. will provide battery cells to VW from a $1.7 billion facility the South Korean company is constructing in Commerce, Ga. VW will assemble the cells into packs for future electric vehicles.

The carmaker broke ground on an $800 million expansion of the main Chattanooga plant today. VW will use the additional 564,000 sq ft to assemble the company’s upcoming ID.4 electric crossover vehicle beginning in 2022.

The ID.4, a production version of the Crozz concept vehicle, will first be launched next year at VW’s factory in Zwickau, Germany.

VW currently produces the three-row Atlas crossover and Passat sedan in Chattanooga. Last month the facility began making a two-row variant of the Atlas, dubbed the Atlas Cross Sport. VW will build the EVs and piston-powered vehicles on the same assembly line.

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