Volkswagen Said Planning to Build Massive Battery Production Facility to Rival Tesla (TSLA)

Volkswagen (VW) is looking to take on Tesla (Nasdaq: TSLA) in the battery supply chain business.

According to Germany's Handelsblatt, VW is planning to present its idea for a massive battery production facility. Sources said that the measure is likely to get regulatory approval.

Scaling up of battery production to ultimately lower costs will be key for any auto manufacturer looking to get a foothold in the electric vehicle segment. Tesla figure this out early and has been working closely with partners on construction of its Reno, Nevada-based Gigafactory.

There wasn't any timeline mentioned on when VW's project might be completed, if approved.

Shares of Tesla are up 2 percent.

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