Polestar Expands Manufacturing to South Korea in Response to Trade War

Renowned Chinese-owned electric car manufacturer, Polestar, has announced its plans to produce their future model, the Polestar 4, in Busan, South Korea. This strategic move is seen as a response to the ongoing trade war between the United States and China and aims to mitigate potential risks associated with it. In addition to its original location in Hangzhou Bay, China, Polestar will utilize the manufacturing facilities of Renault Korea Motors, located in Busan, for the production of their electric vehicles.

The South Korean production is expected to commence in the second half of 2025. The decision to expand manufacturing operations to Busan not only reduces reliance on a single manufacturing site but also takes advantage of the existing expertise and infrastructure of Renault Korea Motors. This is significant as the Busan plant previously focused on producing Samsung vehicles.

Polestar’s move mirrors the actions of other prominent electric car manufacturers who are diversifying their production locations. Volvo Cars recently announced that its upcoming electric subcompact crossover, the EX30, will be manufactured in Ghent, Belgium, in addition to its existing facility in Zhangjiakou, China.

Furthermore, Tesla, the leading electric car manufacturer, is reportedly exploring options in India and Germany to produce their upcoming model priced at €25,000 (S$32,180). Tesla’s plant in Shanghai, China currently holds the title of its largest production facility, surpassing the factory in Fremont, California in 2022.

As the global electric vehicle market continues to grow, manufacturers are actively adapting their strategies to navigate geopolitical challenges and meet the increasing demand for sustainable transportation solutions. By diversifying production locations, carmakers like Polestar are positioning themselves for long-term success.


Q: Why is Polestar expanding its manufacturing to South Korea?
A: Polestar aims to minimize potential risks associated with the trade war between the United States and China by diversifying its production locations.

Q: When will Polestar commence production in Busan, South Korea?
A: Production in Busan is expected to start in the second half of 2025.

Q: Are other electric car manufacturers following a similar strategy?
A: Yes, manufacturers like Volvo Cars and Tesla are also expanding their manufacturing locations to reduce reliance on a single site and mitigate geopolitical risks.

Q: Which country currently houses Tesla’s largest production facility?
A: Tesla’s plant in Shanghai, China is currently its largest car production facility.