Polestar 3 Production Shifts Entirely to the US as Chinese Factory Shutters

The Volvo factory outside Charleston, South Carolina, is set to play an even more pivotal role in the company's manufacturing operations. Formerly the production site for the S60 sedan, in recent years the facility has shifted to building Volvo's flagship electric SUVs, the EX90 and the closely related Polestar 3. Now, Volvo and Polestar have announced that the Charleston facility will become the sole production site for the Polestar 3, as the company shutters the China-based factory in Chengdu that had previously been manufacturing the premium electric SUV.

"The move to consolidate global Polestar 3 production in Charleston help[s] generate efficiencies for both companies, whilst also underscoring our confidence in the plant and the role it plays in our manufacturing footprint," said Håkan Samuelsson, chief executive of Volvo Cars. "The US is a very important market for Volvo Cars, both to support our growth ambitions as well as a strategic production site to meet regional and export demands."

The strategic shift comes as Volvo grapples with a challenging 2025, with sales falling by 7 percent. In contrast, Polestar, which was spun out from Volvo's performance arm into a standalone startup in 2017, had a rather good 2025, seeing a 34 percent increase in sales. By consolidating Polestar 3 production in the US, the company aims to capitalize on the growing demand for the premium electric SUV and streamline its manufacturing operations.

The move also underscores the strategic importance of the Charleston facility within Volvo's global manufacturing footprint. As the automaker continues to expand its electric vehicle lineup, the South Carolina plant will play a vital role in meeting both domestic and international demand for its premium SUVs. By eliminating the need to split production between the US and China, Volvo and Polestar can achieve greater operational efficiencies and ensure a steady supply of the in-demand Polestar 3.

The decision to consolidate Polestar 3 production in Charleston also highlights the growing importance of the US market for Volvo and its electrified sub-brand. As consumer appetite for premium electric SUVs continues to rise, the automaker is positioning itself to capitalize on this trend by streamlining its manufacturing operations and doubling down on its presence in the American market.