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Polestar 3 production is underway in the US

The move stateside avoids an eye-popping tariff on Chinese EV imports.

Polestar

Electric vehicle company Polestar has started production for the Polestar 3 in South Carolina. Polestar 3 cars from this location are intended for consumers in the US and Europe. The Volvo-owned company's first SUV debuted in 2023, but the shift to a US production facility will help it to avoid huge tariffs for importing EVs from its facility in Chengdu, China.

"Manufacturing Polestar 3 in the USA is a crucial step for us," Polestar CEO Thomas Ingenlath said. "Now we offer customers in America an electric SUV that is built in America. Exporting the South Carolina produced Polestar 3 to Europe will strengthen our business on a broader scope."

Earlier this year, the Biden administration placed a sizable increase on the costs for imports of electric vehicles from China. The White House move to quadruple the tariff on Chinese-made EVs was meant to "protect American manufacturers." Even before that change was announced, we'd heard that Polestar 3 production would be shifted to South Carolina. The Polestar 4, on the other hand, will be manufactured at the company's plant in South Korea when production begins in mid-2025.