Volkswagen announced an e-offensive, saying it would spend 54 billion dollars over the next five years to dominate the global electric car market.
The 12-brand group has vowed to set up six battery factories in Europe by the end of the decade as part of the push, hoping to reduce reliance on Asian suppliers of the key component in electric cars.
Electric car pioneer Tesla meanwhile is building a “gigafactory” near Berlin that aims to produce around 500,000 vehicles a year initially.
The announcement comes as carmakers around the globe are vowing to go all-electric over the coming years.
BAIC, one of China’s largest state-owned automakers, has said it will phase out sales of petrol vehicles by 2025, as has Britain’s Jaguar.
Sweden’s Volvo plans to sell only electric models from 2030, followed by U.S. giant General Motors from 2035.
Mercedes-Benz maker Daimler plans to phase out internal combustion engines by 2039.