According to a report from The New York Times, an unnamed Volkswagen executive said the automaker pays less than $100 per kWh for its batteries.
The new framework will be an extension of last year's partnership on commercial vehicles, the companies told Reuters.
Electric vehicles from Audi, Mercedes-Benz, and Volkswagen have reached significant milestones in recent weeks.
The Volkswagen Jetta is all-new for 2019 and starts at $18,545. It's powered by a 147 horsepower, turbocharged four-cylinder engine.