Thomas Ingenlath, CEO of Polestar and a designer by profession, made a surprise announcement at the Polestar Day event held in Los Angeles, California, on Nov. 9 (local time). He revealed plans to produce the Polestar 4, a coupe-style Sports Utility Vehicle (SUV), in South Korea.
On Nov. 16, the automobile industry noted a contrasting strategy to the global car manufacturers who are withdrawing or postponing investments in electric vehicles. Following Hyundai Motor Company’s move to build a dedicated electric vehicle factory in Ulsan, luxury electric car company Polestar is strategizing to make South Korea a major production base for electric vehicles.
The Polestar 4, to be produced at the Renault Korea Busan plant, targets the North American market and the Korean domestic market. The initial production volume is expected to be about 10,000 units per year, with plans to gradually increase this number depending on export conditions.
Polestar has been implementing an aggressive strategy with the consecutive launches of Polestar 2, followed by Polestar 3 and recently Polestar 4. The strategy to secure production bases is also being rapidly deployed. Initially exploring other regions in Asia besides Korea, Polestar ultimately chose South Korea, citing the country’s relatively rapid adoption of electric vehicles, the presence of skilled labor, and the positioning of world-class battery companies as advantages.
CEO Ingenlath praised the Renault Korea Busan plant, saying, “It has 23 years of vehicle manufacturing experience, employs 2,000 skilled workers, and enjoys geographical advantages being directly connected to the export port.” Indeed, the Renault Korea Busan plant ranks first or second in quality assessments among all Renault Group factories worldwide.
The possibility of collaboration with Korean battery companies is also drawing attention. Recently, Polestar and SK on signed a supply contract for battery modules to be used in the Polestar 5 (scheduled for production in 2025). The industry speculates that Korean-made batteries might also be used in Polestar 4.
Polestar, an electric vehicle brand, became independent from Swedish carmaker Volvo in 2017. Volvo Cars and China’s Geely Holding Group share ownership, and the company is headquartered in Sweden. Polestar entered the Korean market in December 2021.