BERLIN - Volkswagen is investing around one billion euros ($1.13 billion) in transforming its production plant in Emden in northwest Germany, the car maker announced on Monday.

The conversion of the plant, where the new all-electric compact SUV (sports utility vehicle) ID.4 would be produced from 2022 onwards, had already started, according to the company.

Once complete, the plant would have a production capacity of up to 300,000 electric vehicles per year, the company said.

"With the conversion of our plant at Emden into a production location for electric vehicles, Volkswagen is forcing the pace of system change," said Ralf Brandstaetter, chief executive officer (CEO) of the Volkswagen brand.

The biggest part of the conversion project is the construction of a 50,000-square-meter factory hall "where only electric vehicles will be assembled," Volkswagen noted. All buildings, including a press, and a body and paint shop, are expected to be completed by summer 2021.

"Even in the coronavirus crisis, the Volkswagen brand is consistently moving ahead with the changeover of its plants to e-mobility in line with its plans," the company noted.

By 2025, Volkswagen is planning to reduce the carbon dioxide emissions of its car fleet by one third. By 2024, the brand aims to invest about 11 billion euros in e-mobility and would transform several of its plants.