Volvo Cars and Polestar have signed an agreement to jointly produce electric cars at a new plant in Slovakia from 2027.

The agreement between Volvo Cars and Polestar calls for collaboration on the production of the Polestar 7 model at the plant in Kosice, Slovakia, starting in 2027. This will be the first European plant for Polestar, which until now only manufactured in China and the US. The plant, built with an investment of €1.2 billion, will be climate-neutral and will exclusively produce electric cars, contributing to Volvo's strategy to become a fully electric manufacturer by 2040. Annual production will reach 250,000 cars, generating thousands of jobs.