Polestar has announced it has started the production of its luxury SUV, Polestar 3, in Volvo’s plant in South Carolina.

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The firm says this makes the Polestar 3 the first Polestar to be produced on two continents.

The factory in South Carolina produces cars for customers in the US and Europe, complementing existing production in Chengdu, China.

The move, also echoed by other automakers, means Polestar – majority owned by China’s Geely – avoids steep tariffs following the US and EU’s fallout with China, over ‘unfair’ subsidies and fears about competition for China-made vehicles.

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Volvo announced that its EX30 would be produced in Ghent, Belgium, from 2025.

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Thomas Ingenlath, Polestar CEO, said:  “Exporting the South Carolina produced Polestar 3 to Europe will strengthen our business on a broader scope. Polestar 3 has received superb reviews from global automotive media, with strong customer test drive interest.”

The automaker also said it is taking additional steps to diversify its wider manufacturing footprint, with production of Polestar 4 set to start in South Korea from the middle of 2025.