Mercedes-Benz hasn’t been shy about its intention to flood the world with new electric cars, but one thing still up in the air was . Now, we have an answer. On Friday, the German automaker said it’s dropping nearly $600 million on a factory expansion to start producing an all-electric small compact car.

As Reuters teed it up, it’s full proof that Mercedes is looking to

Here’s more from Reuters:

It plans to launch more than 10 electric vehicles for Mercedes-Benz Cars by 2022 as U.S. rival Tesla struggles to ramp up production of its Tesla Model 3.

“The Smart plant in Hambach will become a part of our global compact car production network with the lead plant in Rastatt, Germany,” Mercedes-Benz production chief Markus Schaefer said in a statement on Friday.

Mercedes said last month that , and it debuted a concept last fall called the EQA, which has a claimed range of 248 miles, so again, this isn’t a terribly surprising move. But it underscores just how much competition Tesla’s going to face in the coming years.