Volkswagen is taking matters into its own hands.

On Friday, the German auto giant said it's going to spend €870 million (about $995 million) by 2020 to develop electric vehicle (EV) components.

It did so because there isn't a major battery manufacturer in Europe, which leaves European car makers at the mercy of Asian suppliers.

This blockbuster announcement comes just two months after Volkswagen said that it plans to spend almost $50 billion on developing EVs, self-driving cars, and new mobility services. It's gearing up its production capacity so it can manufacture one million EVs.

Of course, Volkswagen isn't the only major car maker going "all in" on electric vehicles.

• Every major car company in the world is transforming itself into an electric car company…

This is why I've been pounding the table on this theme for months. It's one of biggest megatrends out there.

Unfortunately, most investors are going about speculating on EVs all wrong. They're betting on EV makers like Tesla. But as I've explained many times, that's asking for trouble.

The good news is that there's a better way to profit from this megatrend. You can speculate on the commodities that make the EV revolution possible.