Initial deliveries of the compact SUV, which will be available exclusively in R-Dynamic trim, are expected to begin in early 2021.
Prices start from £53,155, which means it will not be eligible for the UK plug-in car grant following changes made in the government's budget in March.
The new policy excludes all cars costing more than £50,000 from the grant. They no longer incur the premium rate tax, meaning drivers will save £320 per year for five years after the initial year of registration, but that still leaves buyers £1900 worse off than under the old system.
The new EV will join the petrol and plug-in hybrid variants of the XC40 and becomes the first of five fully electric models that Volvo will launch in the next five years. The firm is aiming for EVs to account for half its global sales by 2025, with the rest featuring a hybrid powertrain. Those five electric cars, along with plug-in hybrid models, will carry the new Recharge branding.
Volvo has also outlined plans to reduce its lifecycle carbon footprint per vehicle by 40% by 2025, as part of a long-term goal to become climate-neutral by 2040.
The four-wheel-drive XC40 P8 Recharge features two 201bhp electric motors, one mounted on each axle, that combine to offer 402bhp and 487lb ft of torque. That enables it to achieve 0-62mph in 4.9sec and a governed top speed of 112mph.
Power is drawn from a 78kWh underfloor battery, with Volvo citing a WLTP-certified range of more than 248 miles. Charging is available through an 11kW AC charger or a 150kW DC fast-charger, which the firm says can deliver an 80% charge in 40 minutes.