Mercedes-Benz is spending $1 billion at its Tuscaloosa manufacturing plant, making SUVs for the company's EQ electric brand. The company is expected to hire another 600 people as part of a sweeping number of moves situated in west Alabama.

The projects were announced at a news conference at the plant, which is celebrating the 20th anniversary of its opening today.

The project will also entail building a new one million square foot battery plant near the vehicle factory, making it the company's fifth battery plant globally. Construction on it is expected to start next year, with production to begin around 2020.

In addition, Mercedes is building what's being called a new Global Logistics Center and a after-sales North American hub in neighboring Bibb County, five miles from the plant. A groundbreaking is scheduled for tomorrow.

Alabama Commerce Secretary Greg Canfield said the details of the state's incentive package are still being negotiated because the timetable and scope of the project is still being determined. He said the package will include statutory incentives, performance-based incentives, statutory tax abatements and tax credits.

Earlier this month, Mercedes announced the company will offer electric versions of all its models by 2022. In all, the company is planning to offer more than 50 electrified vehicle variants, while developing plug-in hybrids and introducing 48-volt systems.

EQ SUVs are expected to start rolling off assembly lines in Tuscaloosa by the beginning of the next decade, the company said. EQ models will be integrated into the plant's production.

"We are excited to celebrate 20 years of production in Tuscaloosa by expanding our operations in the region and by bringing our electric initiative to the United States," said Markus Schafer, member of the divisional board of Mercedes-Benz Cars, Production and Supply Chain.

"With this $1 billion investment, we are significantly growing our manufacturing footprint here in Alabama, while sending a clear message to our customers across the U.S. and around the world: Mercedes-Benz will continue to be on the cutting-edge of electric vehicle development and production."

Mercedes is already in the midst of a $1.3 billion expansion, which includes a new body shop, enhancements to the SUV assembly shop and upgrades in logistics and information technology.

The battery plant planned is part of a $1.8 billion push by Daimler into its battery production network, with other production facilities in Germany and China.

The Global Logistics Center is expected to begin in 2019, while the North American hub is scheduled to start operations by the end of 2020.

It will supply oversea assembly plants with car-kits, where Mercedes-Benz produces vehicles for local markets. The after-sales North American hub will be located with the new logistics center and will provide markets abroad with spare parts. This will allow the company to meet rising market demands amid the growing variety of models.