Volvo Cars says that it is making significant investments that allow for the in-house design and development of electric motors for the next generation of Volvo models, as the company continues to move towards becoming a fully electric car maker.

The company has opened a new electric motor lab in Shanghai, China—the latest addition to its global network of facilities for the development and testing of electric car components. The lab comes in addition to ongoing e-motor development in Gothenburg, Sweden, and battery labs in China and Sweden.

The newly opened electric motor lab in Shanghai became operational last month. It will mainly focus on electric motor development for use in fully electric and hybrid cars based on Volvo Cars’ forthcoming SPA 2 modular vehicle architecture.

Bringing the development of electric motors in-house will allow Volvo Cars engineers to further optimize electric motors and the entire electric driveline in new Volvos. This approach will allow engineers to make further gains in terms of energy efficiency and overall performance.

Through in-house design and development, we can fine-tune our e-motors to ever better levels. By constantly improving their overall performance levels in terms of energy efficiency and comfort, we create an electric driving experience that is unique to Volvo.

—Henrik Green, Chief Technology Officer at Volvo Cars

The investments in e-motor design and development represent yet another step towards Volvo Cars’ climate ambitions and electrification strategy. It aims for 50% of its sales to be fully electric vehicles by 2025, with the rest hybrids.

Electrification is part of the company’s comprehensive climate plan, which addresses carbon emissions across all its operations and products, towards its ambition to become climate-neutral by 2040.

The plan goes beyond addressing tailpipe emissions through electrification; the company will also tackle carbon emissions in its manufacturing network and wider operations, its supply chain and through recycling and reuse of materials.

As a first tangible step towards its 2040 vision, the company aims to reduce its lifecycle carbon footprint per car by 40% between 2018 and 2025.