German car manufacturer Volkswagen is to create a power supply company, as part of a push towards electric vehicles.

The new Elli firm, which stands for 'Electric life', will be headed by CEO Thorsten Nicklaß.

Headquartered in Berlin, it is to develop products and services connected with energy and charging for the group's brands.

The company will gradually build up a portfolio of power tariffs, wallboxes and charging stations.

It will also offer green power to customers outside the group, which will be from renewable sources that are 100% CO2-neutral.

In a statement, Volkswagen says: "In future, customers will not only meet Volkswagen in dealerships and in their vehicles but also in their homes, where half of all electric car owners charge their vehicles.

"The services available will include green power for private households with and without an electric vehicle."

Details of the first tariff models will be announced in the near future.

Volkswagen's new company wants to link energy and mobility | Image: © Volkswagen AG

It says customers will be able to choose between a variety of wallboxes for safe, rapid and convenient charging at home.

"The low-cost 11 kW AC wallbox is suitable for overnight charging, a procedure that protects the battery.

"Full charging will take between five and eight hours. The comfort version also operates with 11 kW but also offers connectivity via attractive payment arrangements and update options."

It has also announced charging at employee parking spaces and dealerships.

This will include the expansion of charging stations at Volkswagen's own employee car parks from 1,000 to more than 5,000 by 2020 - and the equipment of all 4,000 dealers and service partners in the EU.

CEO Thomas Ulbrich said: "As one of the world's largest automakers, Volkswagen is going to force the pace of the urgently needed transport and energy transition to emission-neutral e-mobility.

"The new company will play its part with energy offerings from renewable sources and smart charging solutions.

"This way, we are entering a strategically relevant, extremely exciting business area that offers considerable opportunities for strengthening ties with existing customers as well as accessing entirely new customer groups.

"Our mission is to take e-mobility out of its niche and to place it firmly in the mainstream."

"We will be creating a seamless, sustainable ecosystem that addresses the main applications and provides answers to all the energy questions raised by electric car users and fleet operators."