Skoda has started producing the first components for VW Group’s electrified models at its main factory in Mladá Boleslav.

The Czech brand will be responsible for supplying components to Audi, Seat and Volkswagen for their plug-in hybrid models, a decision that was taken back in 2017. Following a 25.3 million-euro ($28 million) investment, Skoda has now started producing high-voltage traction batteries for PHEVs.

Also Read: 2020 Skoda Superb iV Is A Plug-In Hybrid With 55 Km Of Electric Range

More specifically, Skoda will build the battery packs that go into the MQB-based plug-in hybrid models of the VW Group, including the new Superb iV, the VW Passat GTE, the Seat Tarraco PHEV and many more.

“For us, this production of battery systems, which is very technologically challenging, is an important step in our switch to electromobility,” said Christian Bleiel, Head of Component Production at Skoda. “We will further expand the production of electric components.”

Skoda is sourcing battery cells and modules from suppliers, before assembling them on the production line. The battery packs are then tested and charged before being installed into the vehicles.

“The high-voltage batteries, made in Mladá Boleslav, are proof of our outstanding technical expertise and the result of outstanding teamwork from all Škodians involved,” added Michael Oeljeklaus, Skoda Board Member for Production and Logistics.

Around 200 employees work in the firm’s electric component factory and over the next few years, Skoda will boost the initial production capacity of 150,000 units per year.

The Czech carmaker will begin assembling its first plug-in hybrid model, the Superb iV, this September, followed shortly after by electrified versions of the Kodiaq and Scala.