Geely’s Volvo Cars said it would assemble electric motors at its powertrain plant in Skovde, Sweden, and plans to establish complete in house e-motor production by the middle of the decade. It will invest SEK700m on this.

The company aims for its global sales to consist of 50% fully electric cars by 2025, with the rest hybrids.

The Skovde operations date back to the company’s founding in 1927.

Volvo Cars announced earlier this year it was investing significantly in the in house design and development of e-motors. The planned investments in Skovde are the first steps towards in house assembly and manufacturing.

In a first stage, the Skovde facility will assemble e-motors. At a later stage, the company intends to bring the full manufacturing process to a facility in Skovde.

Bringing development and production in house will allow engineers to further optimise electric motors and the entire electric driveline. This approach will allow further gains in terms of energy efficiency and overall performance.

Design and development of the company’s electric motors takes place in Gothenburg, Sweden, and Shanghai, China. Earlier this year, Volvo Cars opened a new electric motor lab in Shanghai, in addition to ongoing e-motor development in Gothenburg, and battery labs in China and Sweden.

The remaining activities at the Skovde engine plant, focusing on the production of internal combustion engines, will be transferred to a separate subsidiary of Volvo Cars, named Powertrain Engineering Sweden (PES). PES is intended to be merged with Geely’s combustion engine operations, as announced earlier.