New plant to build 30k premium EVs per year
Owned by new company of parent Geely
Zhejiang Geely Holding Group Co Ltd is the company that is the parent to Polestar, along with Volvo and Lotus Cars, and sells its own vehicles under the Geely brand (plus owns nearly 10 percent of Daimler). The report, citing persons “with direct knowledge of the matter,” said that Geely is planning a new facility near the western city of Chongqing that could build 30,000 premium EVs per year. The factory would be run by a new company, wholly owned by Geely.
Geely wouldn’t be the only automaker expanding EV capacity in China, BMW and Tesla, among others, are in the process of doing the same, plus sourcing batteries and components within the country. China is the world’s largest auto market and is also the top seller of electric vehicles, with alternative vehicle power heavily government subsidised.
The low-volume Polestar 1 PHEV is built at a facility in Chengdu, while the higher production Polestar 2 electric is built in Taizhou.
While the two companies didn’t comment on the news, Polestar Chief Executive Thomas Ingenlath told Reuters the firm is scouting markets in Asia-Pacific and the Middle East. It plans to expand its vehicle offerings and raise the number of Polestar Space showrooms from 23 to 45 by end of year. It’s not clear if all 30,000 vehicles at the plant would be Polestar models, of if capacity would be shared by other Geely Group premium EVs.