Volkswagen will use its glass-walled Transparent Factory located in the middle of Dresden, Germany, to build the ID 3 electric hatch, the automaker said on Monday.

The famous plant was originally established for the Phaeton which bowed out of production in 2016 and in recent years has been used for the e-Golf, although the electric hatch has also ceased production with the arrival of the redesigned Mk8 Golf in October.

VW's decision to build the ID 3 in Dresden secures the future for workers at the Transparent Factory, which also doubles as an exhibition center. The first ID 3s made in Dresden are due to roll off the line in the fall of 2020.

Volkswagen Transparent Factory in Dresden, Germany

Volkswagen Transparent Factory in Dresden, Germany

“The uncertainty following the end of Phaeton production is now over,” said VW union official Jens Rothe. “The temporary assembly of the e-Golf means the team in Dresden is extremely well prepared for the future of e-mobility and well equipped for our ID family.”

Production of the ID 3 is already underway at a much larger plant in Zwickau, Germany. The electric hatch isn't due in the United States but the related ID 4 crossover SUV is coming here in 2020. The first batch will be sourced from a plant in Germany, but by 2022 the vehicles will be sourced from VW's plant in Chattanooga, Tennessee, for local sale.

Volkswagen Group also said on Friday that it is ramping up its investments in electrification. The automaker said it will spend 60 billion (approximately $66.4 billion) over the next five years on electrification and digitization, with 33 billion of this exclusively earmarked for EV development. One of the goals is to offer 75 EVs across the group's portfolio of brands by the year 2029.