Volvo and Polestar to consolidate Polestar 3 production in US

Volvo says Polestar 3 production will move to its US plant in South Carolina, replacing dual production with a single site. Learn what this means for strategy.

Volvo and Polestar are effectively shifting the global production center of the Polestar 3 to the United States, consolidating output at the South Carolina plant where the model is already built alongside the Volvo EX90.

This is more than a relocation. The Polestar 3 shares the SPA2 architecture with the fully electric Volvo EX90, which is already produced in Ridgeville. Using the same platform allows both models to run on the same production lines, simplifying manufacturing and improving efficiency.

The move also highlights the strategic importance of the US for Volvo. The company identifies the market as critical not only for sales but also as a production base. Localizing production helps reduce reliance on imports and improves responsiveness to regional demand.

The South Carolina facility has evolved into a major hub rather than a local plant. Around $1.3 billion has been invested in the site over the past decade, giving it an installed capacity of up to 150,000 cars per year. It already produces the EX90, will add the XC60, and is set to introduce a new next-generation hybrid model before 2030.

Previously, the Polestar 3 was also produced in Chengdu, China, with US production complementing that output. Now, Volvo and Polestar plan to concentrate production in the United States, while vehicles built there continue to be supplied both to the domestic market and to Europe.

In a broader sense, the decision fits into Volvo’s strategy of balancing production across Europe, China and the US, while tailoring output to regional needs. Consolidating Polestar 3 production in South Carolina strengthens the plant’s role as a global manufacturing hub within this network.