Polestar said on Thursday its upcoming SUV model, the Polestar 7, will be manufactured at Volvo Cars’ new plant under construction in Slovakia, marking the Swedish electric vehicle maker’s first vehicle to be produced in Europe.
The company, which does not own its own factories, currently relies on facilities operated by Volvo Cars and Geely in China and the United States. One Polestar model is also set to be manufactured in South Korea starting this year.
Polestar and Volvo Cars, both owned by China’s Geely and its founder Li Shufu, have signed a memorandum of understanding to formalize the agreement. The Polestar 7 is scheduled to launch in 2028.
“Polestar is taking the next step in diversifying its contract manufacturing footprint by expanding it to Europe,” the company said in a statement, adding that the move would “strengthen its position in its home market.”
Polestar 7 will be based on group technology from Volvo Cars and Geely, including next-generation cell-to-body battery design, in-house developed electric motors, and shared components across the group. The SUV will be tailored to match Polestar’s characteristic performance and design.
“Working with Volvo Cars to develop and manufacture Polestar 7 in Europe is a unique opportunity that will strengthen our position in our home market,” said Polestar CEO Michael Lohscheller. “Our strategy of utilising Group architectures as the base for our future model line-up gives us access to the best, latest technologies, in a cost-efficient manner. With a design and sporty driving characteristics that are instantly recognisable, Polestar 7 will set new standards in the premium compact SUV segment.”
Volvo Cars President and CEO Håkan Samuelsson also emphasized the benefits of the collaboration, saying: “Our collaboration with Polestar on the development and manufacturing of the Polestar 7 underscores how Volvo Cars and Polestar continue to leverage synergies to efficiently deliver outstanding vehicles built for our distinct customer segments.”
Volvo’s plant in Košice, Slovakia, began construction in 2023. The location was chosen for its strategic logistics access to major European markets and a robust local supplier base.