Polestar has announced that its upcoming Polestar 4 EV will be contract manufactured in a factory in Busan, Korea. Heretofore, Polestar’s vehicles have been assembled in China.
We’re at Polestar Day in Santa Monica today, where the company is showcasing its future plans to media, investors and owners. For more news from the day, check out our Polestar Day News Hub.
On yesterday’s earnings call, Polestar mentioned that progress was being made on new manufacturing plants for its upcoming cars. The Polestar 3, for example, will be built in factories in Chengdu, China and in South Carolina, USA, with both of these factories coming online in 2024.
But it also mentioned that a “new non-China plant” was in the works, though Polestar did not elaborate on that yet.
Well, less than 24 hours later we now know where that plant will be – the port city of Busan, South Korea, the second most populous city in the country and site of one of the world’s largest ports.
But this isn’t a new plant – it’s an already-existing plant owned by Renault Korea Motors (RKM). The plant is Renault’s largest in Asia, and will build the Polestar 4 for the North American and domestic South Korean markets. It’s the first battery EV to be built in the plant.
Polestar has so far focused on contract manufacturing, rather than building its own plants. It calls this an “asset-light” approach, which it says “enables it to benefit from the competence, flexibility and scalability of its partners and major shareholders, without needing to invest in its own facilities.” Polestar has no Polestar-only plants, all Polestars are built in plants on a contract basis.
Polestar CEO Thomas Ingenlath said that RKM shares Polestar’s vision for sustainability and touted Polestar’s global footprint and ambitions:
We’re very happy to take the next step in diversifying our manufacturing footprint together with Geely Holding and Renault Korea Motors, a company that shares our focus on quality and sustainability. With Polestar 3 on-track to start production in Chengdu, China in early 2024 and in South Carolina, USA, in the summer of 2024, we will soon have manufacturing operations in five factories, across three countries, supporting our global growth ambitions.”
Thomas Ingenlath, Polestar CEO
RKM’s CEO also commented on the new partnership:
Polestar 4 will be the first full battery electric vehicle produced in the Busan plant, symbolising Renault Korea Motors 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.
Stéphane Deblaise, CEO of Renault Korea Motors
Korea is an interesting choice, because it does have implications for the US. Right now the US and China are in a gradually expanding trade war, and it’s affecting electric vehicles. The EV tax credits in the Inflation Reduction Act include limitations on battery component and critical mineral sourcing, primarily focusing on increasing US domestic assembly of EVs and EV battery components, but also wanting to source minerals from US free trade countries – which Korea is one of, and China is decidedly not.
This has caused rankling with some of the US’ trade allies, with Korea being one of the main objectors to the rule. While Korean minerals qualify under the rule, cars that are assembled in Korea are not. The Korean auto industry has been doing well in terms of US EV sales with E-GMP platform cars like the excellent Hyundai Ioniq 5 and Kia EV6, and the tax credit changes represented a blow to that industry.
So even if Korean manufacturing could help the Polestar 4 meet the mineral requirements of the law, the car still won’t qualify for purchase tax credits because it’s assembled overseas. But if the trade war expands further from here, building outside of China might help keep things more stable for the company.
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“Honda hydrogen is open for business,” says David Perzynski, assistant manager of hydrogen solutions development at American Honda. “(We have) the fuel cell technology, the expertise, and the supply chain to power a variety of zero-emissions products, including commercial trucking and stationary power generation.”
The company arrived with a more developed version of its Peterbilt 579EV-based HFC semi concept, which is based on one of that brand’s existing BEVs and uses the Honda fuel cell as a range-extending generator for its 120 kWh battery … or, rather, it would – if it was ever plugged into a charger.
On battery power alone, the big Pete is good for up to 150 miles of fully loaded range. With the fuel cell along for the piggyback ride, however, the truck’s range climbs to more than 500 miles at an 82,000 lb. combined vehicle weight.
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More than just a range-extender
Honda envisions a world where its hydrogen fuel cell is used in much more than transportation and logistics applications. At the ACT Expo, Honda had a scale mock-up of what a hospital-sized hydrogen backup generator could look like – and hinted that such an installation might soon become a reality.
This is all very normal for Honda
Honda FCX hydrogen fuel cell concept; via Honda.
If it seems weird that Honda is pushing hydrogen so hard these days, it shouldn’t. Honda’s been developing hydrogen fuel cells for nearly forty years, and put its first hydrogen fuel cell car (the FCX concept, above) all the way back in 1999.
Since then, it’s put a number of hydrogen fuel cell-powered vehicles into series production, including the innovative Honda CR-V HFC hybrid that lets you fill the car’s 17.7 kWh battery with electrons at home for up to 29 miles of all-electric driving, then fill up the hydrogen tank for another 241 miles of driving … and they’re not stopping there.
We had a chance to chat with David Perzynski on Quick Charge last year, where he talked us through some of Honda’s hydrogen plans in more detail. You can check it out, below.
Volkswagen of America is recalling nearly 5,700 2025 VW ID. Buzz vans because the NHTSA says the third-row bench seat is too spacious. (For real.)
According to the National Highway Traffic Safety Administration (NHTSA), the third-row bench is physically wide enough for three people, but it’s only designed to hold two, so it’s only equipped with two seat belts. That mismatch violates Federal Motor Vehicle Safety Standard number 208, which covers occupant crash protection. A bench that invites three passengers but only protects two isn’t just awkward – it’s a safety risk. It simply makes it too easy to squeeze that third person in the back “just that once” without a seatbelt, and that’s inviting trouble.
Volkswagen will fix the ID. Buzz issue by having dealers install “fixed unpadded trim parts” that adjust the seat’s usable width, and they’ll do it for free, because recall repairs are always free. It’ll probably be hard plastic on the seat to ensure a third person can’t squeeze in. Owner notification letters are expected to go out starting June 20, 2025.
Volkswagen has reported that, to date, there have been “no field claims known” of safety issues caused by the extra-wide third row bench seat.
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Electric vehicle charging and battery storage specialists Zenobē have inked a deal with Canadian leasing company 7Gen to fund more than 500 commercial EVs and their associated charging infrastructure.
Last week, Zenobē agreed to provide up to $48 million (Canadian) in debt financing to 7Gen to help expand its vehicle-as-a-service electric truck leasing program across Canada.
7Gen supports fleet operators with a comprehensive set of vehicle leasing and financing solutions that cover EV charger deployment, energy management systems, and ongoing operational support for Canadian fleet customers operating electric trucks, vans, and school buses.
Zenobē secured $1.6 billion in equity from its joint majority shareholders KKR and M&G Infracapital to fuel its global expansion into EVs and grid-scale batteries back in 2023. Since then, it’s grown to support more than 2,000 EVs and 120 charging depots across markets in the UK, Europe, Australia, and New Zealand.
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“We’re bringing our innovative funding approach to Canada and specifically to 7Gen,” says Steven Meersman, Co-Founder and Director of Zenobē. “We see momentum behind decarbonization in Canada’s supportive government policies and the clean, affordable power that will ensure a lower total cost of ownership for zero-emissions vehicles. We look forward to sharing our global experience electrifying over 120 depots to benefit 7Gen, its fleet customers and the wider electric fleet market in Canada.”
That innovative funding strategy is something Steven and I had a chance to discuss this week at the ACT Expo in Anaheim, California. “We’re being very careful in the way we approach the North American market,” he said (paraphrasing). “The market is fairly littered with the graves of other UK EV companies that have tried to find a foothold here and failed, so we’re being very careful about our partners.”
Despite living just a few minutes from his Chicago HQ, I’d never met Steven before this week. He’s a super-interesting guy and you will definitely learn a thing or two about how to build a multimillion dollar energy management company like Zenobē from our upcoming podcast (stay tuned for that). But the news here is 7Gen.
“Zenobē’s debt financing supports 7Gen’s next growth step and allows us to help our customers step up the pace of their EV adoption and benefit immediately from operational cost savings,” says Frans Tjallingii, CEO, 7Gen. “Zenobē’s team is well aligned with ours and we are thrilled to partner to scale our impact in Canada together.”
The company will begin rolling out its Zenobē-funded electric trucks in the coming weeks, with new partners and projects set to be announced shortly.
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