Volkswagen is preparing to defend its home turf, ramping up electric vehicle (EV) production to take on Tesla in Germany.

Tesla’s Gigafactory is the company’s first manufacturing operation in Germany, as Tesla works to maintain its dominance in the EV market. Unfortunately for the company, virtually every major automaker is racing to transition to an EV lineup, and Volkswagen is no exception.

According to TheStreet, Volkswagen is planning on spending some $2.2 billion on a new factory to produce its Trinity EV. Construction will begin in early 2023, with the first vehicles slated to roll off the assembly line in 2026. Volkswagen’s goal is to make the Trinity a carbon-neutral vehicle.

“We are setting benchmarks in the automotive industry with Trinity and the new factory and turning Wolfsburg into the global lighthouse for cutting-edge and efficient vehicle production,” CEO Ralf Brandstätter said in a statement.

The company is also “seeking to attract new groups of customers and tap additional sources of income” as it continues to work on autonomous vehicles. Like other automakers, the company has been working on the next evolution of the automobile, developing its own autonomous software and partnering with Microsoft Azure to help power it.