Volkswagen of America CEO Scott Keogh said Wednesday that the carmaker is looking to build US battery and EV manufacturing facilities in the US.

Although he declined to discuss any potential locations for such operations, analysts noted that Volkswagen’s current electrification operations are based in Tennessee, where they are set to begin producing the VW ID.4 crossover EV later this year.

Keogh said, “We are actively in the process of looking at another production facility and also looking at a battery facility.”

A spokesperson emphasized no decisions have been made yet. However constructing new manufacturing facilities would likely involve investments of billions of dollars into the US for Volkswagen.

Keogh made the announcement following the grand opening of Volkswagen’s new $22 million 32,000 sq-ft electric vehicle battery lab, near its assembly plant in Chattanooga. So far Volkswagen has committed $7.1 billion to its EV program in North America. The battery lab, one of four such labs Volkswagen has announced globally, will test and optimize battery designs for the U.S. market.

Volkswagen has been importing its ID.4 crossover EV from Germany in limited quantities of between 800 and 2,000 per month since last year. It is expected the Chattanooga plant will begin operation next month and quickly ramp up production to roughly 7,000 ID.4 units by the end of the year.

Keogh said, “We don’t want to launch with 100 cars. We want to launch with a few thousand built up. This is huge.”

VW sold 2,755 units of the ID.4 during the first quarter of the year and 16,742 last year. However Keogh said the Chattanooga plant is expected to reach a production capacity of up to 10,000 units per month.

Keogh said so far the imported units have not been able to meet customer demand and the model is currently, “completely sold out.”