Volkswagen will build its $2.2 billion electric vehicle-only manufacturing facility in Wolfsburg, Germany. The state-of-the-art facility will be located close to the company’s headquarters and will produce around 250,000 cars per year. The decision to build the new plant came after VW realized that it was easier to build a new plant from scratch than to retrofit existing facilities.

The new Wolfsburg plant will oversee production of VW’s flagship Trinity sedan. The Trinity is slated to launch in 2026, be similar in size to the Passat and appeal to the mass market. It will reportedly have a range of over 435 miles per charge and enable Level 4 autonomous driving. Prices should start in the €35,000 ($38,300) range.

Volkswagen is aiming for a 10-hour production process for each Trinity from start to finish. The Trinity will be the first electric vehicle based on the VW Group’s SSP electric “superplatform” – a chassis that will eventually also be used by Audi, Porsche, Skoda and SEAT.

VW’s other plant in Wolfsburg, which opened in 1938, is currently producing about three times the number of vehicles this new EV plant is aiming for. However, by opening an all-electric plant, Volkswagen can maintain its production plans for its ICE vehicles such as the Golf, Tiguan and Touareg.

This news comes just days after Tesla received final approval for Giga Berlin production.