The Swedish-based electric car maker has until now produced the Polestar 3 in two locations: Chengdu in China and Volvo’s Ridgeville plant in South Carolina. This dual-production setup will be phased out, with manufacturing fully relocated to the United States.
The decision comes at a time when Polestar is still expanding its lineup while managing financial losses and operational complexity. The Polestar 3 remains its largest and most prominent model, sharing its platform with the Volvo EX90.
Consolidation of Production in South Carolina
Polestar first described the move as an “intention” to consolidate production in Charleston, aiming to streamline operations and improve efficiency. According to InsideEVs, the company confirmed that Chinese manufacturing of the Polestar 3 will end before the close of the year.
The SUV is currently assembled both in Chengdu and at Volvo’s Ridgeville facility, where it is produced alongside the Volvo EX90. Centralizing production in the United States reduces the need to manage two parallel manufacturing sites for a single model, simplifying logistics tied to global distribution.
Polestar did not publicly detail all the reasons behind the shift. Still, the report notes that high import tariffs on Chinese-made vehicles and components entering the U.S. market likely played a role in the decision.
Financial Support and Industry Pressures
The production shift comes alongside new financial backing. Volvo will convert approximately $274 million into additional shares in Polestar, adding to $300 million in financing previously confirmed last year.
These measures arrive as the automaker faces ongoing financial challenges. Polestar reported record retail sales of 60,119 vehicles last year, representing a 34% increase compared to 2024. At the same time, the company posted operating losses of around $1 billion.
The consolidation of manufacturing and added financial support are intended to reduce operational strain, particularly the logistical complexity of maintaining production in multiple regions.
Expanding Lineup Anchored by the Polestar 3
The Polestar 3 stands as the brand’s largest model and shares its underlying architecture with the Volvo EX90. It is positioned as a flagship electric SUV within the company’s growing portfolio.
Alongside the Polestar 3, the company continues to sell the Polestar 4 in the United States, a smaller and more affordable model despite its higher number designation. Additional models are expected to join the lineup by the end of the year, including the Polestar 5 four-door grand tourer and a wagon variant of the Polestar 4.
Further expansion is already planned, with a second-generation Polestar 2 and the Polestar 7 compact SUV scheduled for release in 2028.
