The Mercedes-Benz factory in Tuscaloosa, Alabama is getting an upgrade which costs $1 billion. The upgrade includes a new battery factory which will be used to manufacture batteries for the company’s future electric vehicles.

The groundbreaking ceremony has taken place at the new facility which is located seven miles form the Mercedes-Benz Cars vehicle production site in Tuscaloosa.

The German auto giant has confirmed that it’s going to manufacture batteries for its EQ line of electric vehicles at this plant. Mercedes-Benz unveiled its first electric SUV in September this year.

The company is heavily investing in production facilities for electric cars and their batteries. The press release mentions that it’s building eight production facilities in different markets across the globe in addition to eight battery factories. Previously announced locations include Beijing and Bangkok. It already has one plant in Kamenz, Germany.

“We aim to play a pioneering role in the development of e-mobility and are well prepared to accomplish this mission,” said Mercedes-Benz board member Markus Schäfer in a statement during the plant’s groundbreaking ceremony.

Mercedes is far from the only major company that’s heavily investing in EV technologies. It’s certainly not surprising to see that the company is putting its money where its mouth is as it expects to offer electric models of all Mercedes vehicles it’s selling by 2022.

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