Jul 4, 2025
Volvo will manufacture the Polestar 7 in Slovakia to avoid tariffs from China.
Volvo announced on Thursday that it will manufacture the Polestar 7 compact electric SUV in Slovakia starting in 2028. This will be the brand's first European model, coexisting with its other offerings.
The Swedish automakers have signed a memorandum to produce the EV at Volvo's new plant in Kosice, Slovakia, which will have an annual capacity of 250,000 units. A next-generation Volvo EV will be produced there first, followed by the Polestar 7.
Polestar, Volvo's premium EV spinoff, has faced challenges gaining market traction, leading to a survival mode after disappointing sales. However, after a management overhaul and strategic changes, Polestar reported a 76% year-over-year sales growth in Q1 this year. Its current lineup includes the Polestar 2 crossover, Polestar 3 SUV, and Polestar 4 coupe-crossover.
In the U.S., Polestar has stopped taking orders for the Polestar 2 due to tariffs from the Trump administration, as it is produced at Geely Group's plant in China. Most Polestar models are made in China, while the Polestar 3 is also assembled in Volvo’s South Carolina plant, and the Polestar 4 is manufactured at Renault's plant in South Korea and China.
The Slovakia factory will be Volvo's third European plant, focusing exclusively on electric vehicles.
The Polestar 7 will utilize Volvo’s next-generation software-defined vehicle platform, which it will share with the forthcoming EX60, the electric alternative to the XC60 SUV, using the new SPA3 platform.
For both the Polestar 7 and newer Volvo models, the automaker plans to implement giga casting, cell-to-body battery packs, and in-house developed motors. The Polestar 7 will also incorporate Volvo’s Superset software stack, which enables continuous upgrades via over-the-air updates.
The EX60 will use Nvidia’s Drive Thor system on a chip (SoC), capable of processing 1,000 trillion operations per second, required for advanced driver assistance systems (ADAS) with increasing autonomous features in the future.
Although production is still years away, the model is anticipated to launch in the U.S. by 2028. Manufacturing it in Slovakia will help Polestar evade the high tariffs associated with Chinese production.
Additionally, Polestar needs a new, appealing model to remain competitive as major automakers plan to introduce new EVs on next-generation platforms around that time.
The Swedish automakers have signed a memorandum to produce the EV at Volvo's new plant in Kosice, Slovakia, which will have an annual capacity of 250,000 units. A next-generation Volvo EV will be produced there first, followed by the Polestar 7.
Polestar, Volvo's premium EV spinoff, has faced challenges gaining market traction, leading to a survival mode after disappointing sales. However, after a management overhaul and strategic changes, Polestar reported a 76% year-over-year sales growth in Q1 this year. Its current lineup includes the Polestar 2 crossover, Polestar 3 SUV, and Polestar 4 coupe-crossover.
In the U.S., Polestar has stopped taking orders for the Polestar 2 due to tariffs from the Trump administration, as it is produced at Geely Group's plant in China. Most Polestar models are made in China, while the Polestar 3 is also assembled in Volvo’s South Carolina plant, and the Polestar 4 is manufactured at Renault's plant in South Korea and China.
The Slovakia factory will be Volvo's third European plant, focusing exclusively on electric vehicles.
The Polestar 7 will utilize Volvo’s next-generation software-defined vehicle platform, which it will share with the forthcoming EX60, the electric alternative to the XC60 SUV, using the new SPA3 platform.
For both the Polestar 7 and newer Volvo models, the automaker plans to implement giga casting, cell-to-body battery packs, and in-house developed motors. The Polestar 7 will also incorporate Volvo’s Superset software stack, which enables continuous upgrades via over-the-air updates.
The EX60 will use Nvidia’s Drive Thor system on a chip (SoC), capable of processing 1,000 trillion operations per second, required for advanced driver assistance systems (ADAS) with increasing autonomous features in the future.
Although production is still years away, the model is anticipated to launch in the U.S. by 2028. Manufacturing it in Slovakia will help Polestar evade the high tariffs associated with Chinese production.
Additionally, Polestar needs a new, appealing model to remain competitive as major automakers plan to introduce new EVs on next-generation platforms around that time.