FRANKFURT -- Opel will build a battery cell factory in Kaiserslautern, CEO Michael Lohscheller said.

Opel is making an investment in the plant in the billion-euro range with French battery manufacturer Saft, Lohscheller said on Thursday.

The plant will lead to the creation of 2,000 jobs, he said.

Opel currently produces four -cylinder diesel engines for Opel/Vauxhall, according to Automotive News Europe's Guide to Powertrains.

"This marks the start of the transition to a future-proof e-mobility site," Lohscheller said.

Last month the European Commission gave the go ahead for governments in seven countries to support battery projects including the Kaiserslautern project.

The Kaiserslautern plant will be the second EV battery cell factory in Germany owned and operated by an automaker after Volkswagen Group’s 16 gigawatt hour site in Salzgitter. VW is investing 900 million euros in the factory with its partner Northvolt of Sweden.

European automakers are investing heavily in electric cars to meet the EU's tougher CO2 reduction goals.