Volkswagen of America began the construction of its electric vehicle production facility last week. 

The Chattanooga, Tenn., site, where production begins in 2022, will be Volkswagen's North American assembly base for electric vehicles.

Volkswagen Group of America executives, joined Tennessee Governor Bill Lee, German Ambassador to the U.S. Emily Haber, plant leaders, production employees, and community leaders at the plant for the groundbreaking.

Volkswagen began long-range EV production earlier this month in Zwickau, Germany, and will then roll out assembly worldwide, including in Anting and Foshan, 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.

Volkswagen’s investment of about $800 million in the Chattanooga facility will require the addition of about 1,000 jobs. The production version of the ID. CROZZ will initially be assembled in Zwickau. Production of that vehicle is set to begin in Chattanooga in 2022.

The expansion of the plant includes a 564,000-square-foot addition to the body shop. Volkswagen will build both internal combustion engine vehicles as well as battery electric vehicles on the same assembly line.

The company also announced it intends to build a 198,000–square-foot 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. A five-seat version of the Atlas, the Atlas Cross Sport, began production in Chattanooga in October.