Polestar 3 Production Exits China, Consolidates Entirely at Volvo's South Carolina Plant

Polestar and Volvo are pulling all global production of the Polestar 3 electric SUV out of China, consolidating it exclusively at the Volvo plant in Ridgeville, South Carolina. This strategic pivot ends the dual-sourcing model that previously saw the vehicle also built in Chengdu, China, and signals a sharp focus on the U.S. as a primary manufacturing and market hub for the premium EV brand.

The move, announced by Volvo Cars CEO Håkan Samuelsson, is framed as a drive for operational efficiency and a vote of confidence in the South Carolina facility. The plant, which previously built the S60 sedan, has been retooled to produce large electric SUVs, including the Volvo EX90 and the closely related Polestar 3. Samuelsson emphasized the U.S. market's critical role for Volvo's growth ambitions and its strategic position as a production base for both regional and export demand.

This consolidation occurs against a backdrop of significant pressure for both companies. Volvo faced a challenging 2025 with sales declining by 7 percent, while Polestar, spun out from Volvo's performance arm, is navigating its own path as an independent electric vehicle maker. The decision to centralize Polestar 3 production in the U.S. represents a calculated bet on American manufacturing and supply chain resilience, potentially insulating the model from geopolitical trade tensions and aligning its production closer to a key luxury EV market.