The Verge reports that, in order to monitor the activity in this sector, Volkswagen will be founding a new company called Power Co.

The new subsidiary will oversee the supply of materials necessary for battery production, the research and development of new battery technologies and the manufacturing capacity.

Company officials announced the plans after it opened its first battery plant in Salzgitter, Germany.

Herbert Diess, VW CEO, said that "the battery cell business is one of the cornerstones of our New Auto strategy which will make Volkswagen a leading provider of the sustainable, software-driven mobility of tomorrow."

The German carmaker wants to have six battery plants up and running by 2030, one of which being in Eastern Europe and company officials hope that the gigafactories will have a production capacity of 240 GWh per year.

Volkswagen also made investments in a California-based startup called QuantumScape in hopes to achieve more energy-efficient solid-state batteries.

Earlier this year, the German company said it was sold out of EVs for the American and European markets for the rest of the year due to supply chain issues, which affected all car brands from the Volkswagen Group.