The race to dominate the electric-vehicle industry may be getting tighter between Tesla and Volkswagen, as the German automobile giant revealed plans on Monday to reduce the cost of its batteries and operate a wide-ranging charging network.

In its first-ever "Power Day," reminiscent of electric-car maker Tesla's TSLA, 1.48% much-hyped "Battery Day," the German group that owns Volkswagen, Audi, and Porsche said it would rely on six gigafactories in Europe to secure supplies as the industry faces a looming battery shortage.

Shares in Volkswagen Group VOW, +3.55% jumped up around 3% on Monday as the company's top executives outlined a road map for technological expansion.

Electric vehicles have become Wolfsburg, Germany-based Volkswagen's "core business," said Herbert Diess, the chair of the group's board of management, and its new plans come as the battle to dominate the fast-growing electric-vehicle space heats up. 

According to analysts at UBS, EVs could penetrate 100% of the automobile market by 2040. Over the next few years, the Swiss bank projects that Volkswagen and Tesla will emerge as the market leaders, with the German company expected to catch up with Tesla in terms of total volume of cars sold as soon as next year.