Volvo Vehicles said on Wednesday it plans to start out assembling electrical motors at its powertrain plant in Skovde, Sweden.

The automaker will start making the part on the plant inside the subsequent few years. It’s going to begin full manufacturing of the e-motor by the mid-2020s, a Volvo spokeswoman mentioned. Full manufacturing will entail manufacturing the rotating components of the e-motor and the housing for the electrical drivetrain.

Volvo will make investments make investments 700 million crowns ($83 million) on the plant so as to add e-motor manufacturing.

The manufacturing unit will provide e-motors to Volvo’s car meeting vegetation in Sweden and Belgium, a Volvo spokeswoman mentioned, including that it could additionally present the part to the corporate’s vegetation in the US and China.

E-motors are a basic constructing block of electrical vehicles, along with the battery and energy electronics. Bringing the event and manufacturing of e-motors in-house will enable Volvo engineers to additional optimize the part in addition to all the electrical driveline in new fashions, the automaker mentioned.

The choice comes after Volvo earlier this 12 months mentioned it could make large investments in design and improvement of e-motors for its next-generation fashions.

Volvo CEO Hakan Samuelsson said last week that he envisions the automaker changing into an electric-only model inside the subsequent 10 years.

Volvo has beforehand said that it needs half of its international gross sales to be full-electric fashions by 2025, with the remaining to be hybrids.

The actions associated to manufacturing of inside combustion engines on the Skovde plant shall be transferred to a separate Volvo subsidiary, Powertrain Engineering Sweden (PES).

Reuters contributed to this report