Geely-owned Volvo Cars will build the new fully electric Volvo EX30 in its Ghent plant, Belgium from 2025.
Production of the EX30 started earlier this year in Zhangjiakou, China.
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The first cars are scheduled to reach customers later this year.
Building the small SUV in Ghent will expand production, the automaker says.
Jim Rowan, Volvo Cars’ Chief Executive said: “Adding production in Ghent is a logical move as we aim to capture the strong demand for our exciting small electric SUV across the globe.”
Joining the XC40 and C40 models on the Ghent production line, the EX30 is the third fully electric Volvo model to be produced in Europe.
“Our ambition is to sell the EX30 around the world at an attractive price point, easing the transition to driving an electric Volvo car for more people while also contributing to company margins,” Mr Rowan continued.
Volvo plans to sell only fully electric cars by 2030.
