BMW has announced that it’s investing $560 million by 2013 to develop and produce an EV.

The BMW plant in Leipzig, Germany will be expanded to produce the new vehicle, which is currently being called Megacity. BMW will of course be using its luxury car expertise and materials in this new car. The head of BMW has said that this will be the first production model “with a carbon fiber passenger compartment” to lighten the weight while retaining strength and resistance — and keep up the cost.