BMW Group has announced this week, its intention to produce electric-vehicles at its plant in Leipzig with major components from an additional investment in a number of facilities in Bavaria. BMW said that the whole move will be a joint venture with SGL Carbon, SGL Automotive Fibers GmbH & Co KG, carbon fiber fabrics will be produced in Wackersdorf and processed to CFRP components for the new vehicle at BMW Plant Landshut.

“The BMW Group will build the car of the future in Leipzig with high-tech innovations from Bavaria,” said Chairman Norbert Reithofer. “The main reasons behind this decision are the qualities that Germany has to offer: we have a tried and tested production network here and high levels of education and outstanding competencies at our disposal.” An undisclosed company source who said another reason BMW chose Leipzig is because it is the most flexible factory in the BMW empire, and it can quickly increase capacity.

The first BMW electric-vehicles, internally known by its project name of Megacity Vehicle, are scheduled to roll off the line in mid-2013. The vehicle is being developed as part of ‘project i’ and will be sold under a sub-brand of BMW, the company said in a statement.

BMW showed off the Active E (pictured), essentially a 1-Series converted to electricity, in Detroit in January. The Active E builds on the Mini E, and BMW says it plans to build a limited number of them this year and lease them to “selected customers” next year.