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No more Chinese Polestar 3s as production shifts entirely to the US

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Why This Matters

The shift of Polestar 3 production exclusively to the US signifies a strategic move to enhance manufacturing efficiency and strengthen the company's presence in the North American market. This consolidation reflects broader industry trends toward localized production to meet regional demand and optimize supply chains. For consumers, it may lead to faster delivery times and potentially lower costs due to streamlined manufacturing processes.

Key Takeaways

The Volvo factory outside Charleston, South Carolina, will get even busier this year. Formerly the site that built the S60 sedan, in recent years it shifted to building big electric SUVs, the EX90 and closely related Polestar 3. Today, Volvo and Polestar announced that Charleston will now be the sole production site for the Polestar 3; until now, it was also being built at a factory in Chengdu, China.

“The move to consolidate global Polestar 3 production in Charleston help[s] generate efficiencies for both companies, whilst also underscoring our confidence in the plant and the role it plays in our manufacturing footprint,” said Håkan Samuelsson, chief executive of Volvo Cars. “The US is a very important market for Volvo Cars, both to support our growth ambitions as well as a strategic production site to meet regional and export demands.”

Volvo had a challenging 2025, with sales falling by 7 percent. Meanwhile, Polestar, which was spun out from the Swedish OEM’s performance arm into a standalone startup in 2017, had a rather good 2025, seeing a 34 percent increase in sales. So increasing the proportion of Polestar 3s to come out of South Carolina seems sensible.