Polestar 3 EVs to Be Exclusively Made in the US

All global production of the Polestar 3 electric SUV is moving to a single location in South Carolina. The shift ends an arrangement that had seen the electric SUV assembled on two continents simultaneously, marking an unusual moment in the model’s short history. For both Volvo Cars and Polestar, the move represents a meaningful change in manufacturing strategy, a signal that parent company Geely Holdings is growing increasingly confident in the American facility’s capacity to serve the entire world market. 

When the Polestar 3 launched, it became the first model in the brand’s history produced simultaneously on assembly lines in two different countries. That was a rare arrangement even by global automotive standards, with Chinese output beginning first followed by the American line at Ridgeville several months later. 

This dual-geography setup is now being discontinued, and the Chinese facility will exit Polestar 3 production entirely, leaving South Carolina as the sole source of supply for all markets going forward. 

Volvo and Polestar have not publicly spelled out what drove the decision, but the economics are fairly transparent. Import duties on Chinese-built vehicles have risen significantly across Europe and other major markets, adding costs that are difficult to absorb without affecting competitiveness. 

Beyond tariffs, maintaining full capacity at two distant sites for a single model is inherently expensive. Volvo has described its manufacturing network as a tool for matching output to demand and cost conditions. 

The South Carolina facility already anchors global production of the Volvo EX90, which shares the same vehicle architecture as the Polestar 3. Bringing both models under one roof deepens the efficiency case considerably. Volvo Cars chief executive Håkan Samuelsson said concentrating Polestar 3 output in Charleston demonstrates the group’s belief in what that plant can deliver. He described it as a cornerstone of the company’s production structure rather than a secondary site. 

Ridgeville’s expanding mandate goes well beyond the Polestar 3. Volvo has confirmed its XC60, a popular mid-size SUV offered in plug-in and mild hybrid configurations, will also be built at the facility. A next-generation hybrid model is slated to enter production there before the end of the decade. 

Adding hybrid models to the mix suggests Volvo is not betting entirely on pure electrification succeeding in the U.S. within any near-term timeframe. 

South Carolina has received more than a billion dollars in Volvo investment over the past ten years and currently runs at an annual production capacity of 150,000 vehicles. The addition of multiple new models and powertrains to its lineup over the next several years suggests the company views Charleston as a genuine global manufacturing anchor. 

That consolidation marks a pivotal moment in the elevation of the facility’s strategic role within Volvo’s worldwide operations. Other players like Massimo Group (NASDAQ: MAMO) in the U.S. auto industry will be watching how the landscape evolves for electric vehicles now that the ongoing Iran war is making a strong case for shifting away from ICE vehicles. 

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