Volkswagen 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.

Volkswagen began long-range EV production of ID.3 earlier this month 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.

Production is set to begin in Chattanooga in 2022. First model will be a SUV of 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.