Volvo has opened a new electric motor laboratory in Shanghai, China for the development and testing of electric vehicle components. This supplements ongoing electric motor development in Gothenburg, Sweden and battery labs in China and Sweden, the automaker said in a statement.

The electric motor laboratory in Shanghai became operational last month, said Volvo, and will mainly focus on the development of electric motors to be used in fully electric and hybrid vehicles that will be based on Volvo’s upcoming SPA 2 modular vehicle architecture.

“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,” said Volvo chief technology officer Henrik Green.

Electric motors, batteries and power electronics are three component areas that are crucial in the development of electric vehicles, and bringing development of electric motors in-house will allow Volvo engineers to further optimise the entire EV driveline in future Volvo models, it said.

Volvo’s investment in e-motor design and development represent the latest step taken towards its climate ambitions and electrification strategy, it said. The Swedish carmaker stated last year that it aims to have electric vehicles to account for 50% of its global sales by 2025. By 2040, it aims to be climate-neutral.

In addition to addressing each vehicle’s tailpipe emissions through electrification, Volvo also aims to reduce carbon emissions from within its manufacturing network and its wider scope of operations, its supply chain as well as through recycling and reuse of materials, the company said. The first step towards its goal in 2040 is to reduce its per-vehicle lifecycle carbon footprint by 40% between 2018 and 2025, said Volvo.