Polestar 4 EV to be built at Renault’s Korean plant from 2025

Swedish electric vehicle maker Polestar will build its upcoming Polestar 4 SUV coupe at Renault Group’s manufacturing plant in South Korea from the second half of 2025.

At Polestar Day held in Santa Monica on Thursday, Chief Executive Thomas Ingenlath said Renault Korea Motors (RKM) Co.’s plant in the port city of Busan will serve as one of the Swedish firm’s three global production bases alongside those in China and the US.

Polestar’s vehicles have so far been assembled in China. The Swedish firm has no Polestar-only plants with all Polestar cars built at other carmakers’ plants on a contract basis under its “asset-light approach.”

The agreement has been reached between Polestar, China’s Geely Group and RKM for the production of Polestar 4 vehicles at RKM’s Busan plant for exports to the North American market and sales in Korea.

Polestar is an EV manufacturer under Volvo Cars. Geely is Renault Kora’s second-largest shareholder with a 34% stake after top shareholder Renault Group.

“We’re very happy to take the next step in diversifying our manufacturing footprint together with Geely and Renault Korea, a company that shares our focus on both quality and sustainability,” said Ingenlath.

“With the Polestar 3 on track to start production in Chengdu, China in early 2024 and in South Carolina in the summer of 2024, we will soon have manufacturing operations in five factories, across three countries, supporting our global growth ambitions.”

RENAULT KOREA’S FIRST EV TO BE BUILT AT BUSAN PLANT

Located with direct access to exporting ports, RMK’s Busan plant, with about 2,000 employees, has an annual production capacity of 300,000 vehicles – the French automaker’s largest in Asia.

Renault Korea said it will build its hybrid vehicles at the plant from 2024 and contract manufacture the Polestar 4 from the second half of 2025.

Since 2022, Renault Korea has been focusing on producing high-end electric D and E segment cars for both domestic and international markets.

“The Polestar 4 will be the first full electric vehicle produced in Busan, symbolizing RMK’s renewal and our ambitious vision for the future. We are very proud of this new partnership and grateful to the Polestar brand for their trust,” said Renault Korea Chief Executive Stephane Deblaise.

Busan is also home to Renault’s Korean manufacturing base, which currently produces seven vehicle models.

Guido Haak, vice chairman of Renault Group, said in June the French carmaker will build a new EV manufacturing plant with an annual production capacity of 200,000 electric cars in Busan to meet growing demand for eco-friendly vehicles throughout Asia.

Formerly known as Renault Samsung Motors Corp., the Korean unit last year dropped Samsung from its name as it ended 22 years of business ties with the Korean conglomerate.

POLESTAR’S PARTNERSHIP WITH KOREAN BATTERY MAKERS

With Polestar’s contract manufacturing agreement with Renaut Korea, the Swedish firm is also expected to strengthen its partnership with Korean battery makers.

Polestar receives battery cells from Korea’s top battery maker LG Energy Solution Ltd. for its Poles 2 cars.

Earlier this week, Polestar signed a deal to receive nickel-cobalt-manganese (NCM) battery cell modules from SK On Co. to power the upcoming Polestar 5, a luxury four-door grand tourer (GT) model.

Industry watchers said Polestar could also use battery cells made by a Korean battery maker for the Polestar 4.

Write to Nan-Sae Bin at binthere@hankyung.com

In-Soo Nam edited this article.