Swedish electric performance car brand Polestar (Nasdaq:PSNY) confirmed on Thursday that its upcoming Polestar 7 model will be produced in Kosice, Slovakia, in partnership with Swedish car maker Volvo Car AB (Volvo Cars) (STO:VOLCAR-B).

This announcement marks the company's first European manufacturing expansion, supporting its strategy to diversify its production footprint.

Polestar 7, a premium compact SUV set to launch in 2028, will be developed using group architectures from within the Geely Holding Group, including Volvo Cars' technology platform. This collaboration enables access to advanced technologies such as cell-to-body battery systems, next-generation battery density and proprietary electric motors.

Polestar anticipates that development and production in Europe will strengthen its presence in its home market while improving cost-efficiency through group component sharing. The Kosice plant, currently under construction, offers strategic logistical advantages and a robust supplier network.

CEO Michael Lohscheller emphasised the collaboration as a key step in delivering design-focused, high-performance vehicles. Volvo Cars' CEO Håkan Samuelsson highlighted the ongoing synergy between the two brands to efficiently serve distinct customer segments.

Polestar currently manufactures in North America and Asia, with the Polestar 7 set to become its first European-produced model.