BEIJING, China - Both China and Volkswagen are planning to spend $300 billion on electric vehicle technology.
Half of the money is targeted to accelerate the industry's transition in China from shifting power and fossil fuels to electric vehicle and Asian battery technology powers.
The move comes amid plans by the government to cut carbon dioxide emissions and make technological advances.
While speaking to a group of reporters in Beijing, Chief executive of VolksWagen, Herbert Diess said that the Chinese market will decide the future of VW.
Mr. Diess said that China has the right environment and skills to come up with the next generation of cars unlike other places.
Policy-makers and regulators have placed restrictions on diesel engines and conventional gasoline and have called for a shift to electric vehicles. This, Diess says, will make China become a leading automotive powerhouse in the world.
Volkswagen's plan is to develop around 15 million electric vehicles on three continents by 2025.
Of the 300 electrified versions, fifty will be pure electric models and 30 hybrid electric models.