The US represents the largest single market for the XC90.
Volvo has confirmed that the next-generation XC90 will be the second model to be assembled at the company's new manufacturing facility near Charleston, South Carolina.
The S60 will be the first model to roll off the freshly built assembly line next fall, while the XC90 line is expected to be operational by 2021.
The second assembly line is complemented by a new office campus and an estimated 1,900 new jobs, in addition to the 2,000 workers expected to be needed just for the S60.
Volvo says the US represents the largest single market for the XC90, helping revitalize US sales from a 2014 low of 56,000 units to nearly 83,000 vehicles last year.
Prioritizing SUV assembly in the US appears to be a growing trend in the industry. High-riding models continue to grow in popularity, at the expense of smaller cars.
Volvo's announcement follows on the heels of Daimler's announcement of a $1.0 billion plan to expand its Alabama facility to operate another production line for an electric crossover sold under the new 'EQ' sub-brand.
"Our business in the US has been undergoing a transformation over the past two years and this is an important next step for our development here," said Volvo USA CEO Lex Kerssemakers.
The company expects to spend $1.1 billion on the facility, double the initial estimate.