Available exclusively in R-Dynamic trim, the compact SUV has a 402bhp twin motor set-up and a claimed range of more than 248 miles.
However, changes made in the Government's new budget earlier this week means it will no longer be eligible for the UK plug-in car grant.
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 with the old system.
The new EV will join the petrol and plug-in hybrid variants of the XC40 when it goes on sale later this year.
The XC40 P8 Recharge will be the first of five fully electric models that Volvo will launch in the next five years, with the firm aiming for EVs to account for half of its global sales by 2025, 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 limited top speed of 112mph.