On Friday, the German group said it would invest EUR 870 million ($ 985 million) to develop components for electric vehicles by 2020, according to Agerpres.
Charge stations for electric vehicles will be produced at the Hanover plant, where engines and castings are currently being produced.
The first mobile charging stations will be created this year in the hometown of Wolfsburg – and the project will be expanded by 2020.
By 2023, Volkswagen Group wants to invest over € 11 billion in electric and stand-alone vehicles, digitization and mobile services.
The German giant Volkswagen, who, after the polluting emission scandal began to focus on electric cars, announced that it would abandon its gasoline and diesel cars.
Michael Oost, head of the automotive strategy department, said at a conference in Wolfsburg's headquarters in December that "2026 will be the final year for the production of internal combustion engines."
A spokeswoman for the company subsequently confirmed to Reuters that the German manufacturer would focus on electric cars.
The decision places Volkswagen in direct competition with Tesla from Elon Musk. Last month, the Germans announced they are planning an electric car of 20,000 euros and are planning to transform factories in Germany to produce electric vehicles.
The Volkswagen Group's portfolio consists of 12 brands, including VW, Lamborghini, Skoda, Seat, Bentley, Audi and Bugatti, as well as MAN and Scania trucks.