Geely also controls Volvo's breakaway performance auto brand, Polestar, Lynk&Co and black taxi maker LEVC - all of which are pioneering EV technology and new sales and ownership models.
This new commitment will begin with the launch of the S60, which will not be available with a diesel powertrain, just petrol and hybrid.
That said, even petrol engines will eventually be phased out, with Volvo referring to the hybrid models as a "transitional" stepping stone on the road to full electrification.
As mentioned above, the new S60 will be the first new Volvo without a diesel option. Speaking at a Financial Times event on the future of transport, Hafan Samuelsson, Volvo's chief executive, said that "We're not saying diesel is more dirty, but it is more complicated and more expensive".
Meanwhile, Fiat Chrysler Automobiles will cease to offer diesel versions for its Alfa Romeo, Fiat, Jeep and Maserati brands by 2022, as chief executive Sergio Marchionne sees hybrid vehicles as the way to meet goals on Carbon dioxide reduction - with diesel sales unlikely to recover.
The new S60 is yet to be revealed, but it will be based on the same platform as the V60 estate, which was launched earlier this year and is available with diesel engines.
Production of the new S60 will start at Volvo's recently constructed plant outside of Charleston, South Carolina. The Charleston plant will be the only manufacturing location for the new S60, meaning American-built S60s will be sold in the USA market as well as overseas through exports.
A switch away from diesel cars could cause problems for authorities trying to meet Carbon dioxide emissions targets, as petrol cars typically emit more Carbon dioxide.
Volvo aims to have at least 50 per cent of its sales come from electric vehicles (EVs) by 2025.