Mercedes is spending $1 billion on its U.S. factory to build EQ EVs and battery packs.

The announcement was made yesterday, during the 20th anniversary of the Tuscaloosa, Ala., plant. The expansion will include a new battery plant, the company’s fifth battery production facility globally. The Tuscaloosa plant currently builds the GLE, GLS, and GLE Coupe SUVs for global sales. That makes it the logical choice to start building SUV models from Mercedes’ EQ brand of dedicated electrified starting a bit before next decade.

“Thanks to our plant modernization in Tuscaloosa, we will be able to quickly ramp up U.S. production of EQ models, while also being more flexible to our customers’ demands for innovative vehicles,” said Markus Schäfer, Mercedes board member.

For the new EQ brand, so far the company has shown a crossover and a compact hatchback concept with the EQ brand. The first production EQ is expected in 2019.

SEE ALSO: Mercedes-Benz Announces First EQ Production for 2019

In addition to the battery plant and EV capacity, Mercedes is adding a new logistics center and after-sales hub near the plant. The logistics center will supply overseas assembly plants with complete car kits, for markets where the vehicles need to be assembled locally. The after-sales hub will supply spare and replacement parts to markets around the world.

Construction on the battery plant is expected to begin next year, and add 600 jobs to the 3,700 currently employed at the facility.