Polestar 4 will be built in Korea, with potential US-China trade war implications
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.
Korea did push for a different interpretation of the tax credit rules, which the IRS eventually accepted. This means EVs assembled overseas can bypass basically every tax credit requirement by leasing, since a lease is counted as a commercial sale, which is covered by a different portion of the Inflation Reduction Act that doesn’t include the protectionist manufacturing requirements. Polestar does currently pass-through the credit for those who lease a vehicle rather than purchase it, though the company routinely claims that the deal is for a limited time only (before routinely pushing back that deadline).
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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Fortescue is marching towards zero emissions as it invests in new, zero-emission mining equipment options across its global operations. And that investment? It’s already paying off. One analyst says the company’s saving almost $400 million in fuel costs alone. Each year.
From massive, Liebherr-built electric haul trucks and excavators to more than $400 million in Chinese equipment from XCMG, Fortescue is putting its money where its mouth is and making real efforts to decarbonize its global mining operations.
“We’re moving rapidly to decarbonize our Pilbara iron ore operations and eliminate our Scope 1 and 2 terrestrial emissions by 2030. To achieve this target, we will need to swap out hundreds of pieces of diesel mining equipment at the end of their life with zero emissions alternatives,” said Fortescue Metals Chief Executive Officer, Dino Otranto, when the XCMG order was announced. “As the global mining industry continues to evolve, we’re proud to be at the forefront of driving innovation in value adding green technology and showing the world that industry can decarbonize.”
Those efforts aren’t just cutting back on air pollution. Electric equipment assets are helping to keep the company’s workers safe and healthy, too. What’s more, they’re saving the company money – they’re already seeing $300-400 million in fuel savings annually.
Liebherr T264 electric haul truck
The Liebherr T264 electric haul trucks now working for Fortescue defy common sense notions of size, scale, and power. Each truck tips the scales at 176 tonnes (194 tons) and can haul more than 240 tonnes (265 tons) of payload thanks to powerful electric motors and a big-as-a-house-sized 3.2 MWh battery that can be recharged in a little over 30 minutes by Liebherr’s proprietary 6 MW DC fast charger.
If you could keep the car from exploding, that 6 MW (that’s 6,000 kW to you and me) charger could zap a Tesla Model Y Long Range’s 75 kWh battery in some thirty (30) seconds.
“Fortescue has ordered 360 of (T264 battery electric haul trucks) as part of a $4 billion deal with Liebherr to electrify operations at its enormous iron ore mines,” says Gavin Mooney, general manager at Australian energy software platform, Kaluza. “Fuel and energy costs are Fortescue’s biggest operating costs as well as largest source of emissions. By electrifying operations like this it will be able to kill two birds with one stone.”
Battery electric vehicles have moved millions of tons of material at Fortescue mines over the last two years alone, and continue to keep the minerals moving with minimal less impact to the environment.
Electrek’s Take
With billions of dollars on the line and pressure to reduce carbon emissions coming from all sides, it should come as no surprise that the race is on to bring practical, electric, and autonomous heavy mining equipment to market. At CES 2024, electric equipment from Hyundai, Bobcat, Volvo CE, and Caterpillar garnered lots of attention with their innovative concepts, and analysts like IDTechEx estimate that a single 150-ton haul truck can use over $850,000 worth of fuel in a single year.
Meanwhile, big electric haul trucks like this 240 ton unit from Caterpillar can, in certain use cases with high amounts of regenerative braking, operate without any significant cost to recharge. At that point, the reduced maintenance and downtime of BEVs compared to diesel vehicles becomes icing on the TCO cake.
We spoke to Fortescue Zero executives a few months ago on a special interview episode of Quick Charge. Check it out (above) then let us know what you think of Fortescue’s fuel savings in the comments.
Sources links throughout; featured image by Fortescue Zero.
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This world’s first fully electric deconstruction site is being hailed as a landmark in sustainable urban development — and it’s powered by Siemens technology and Volvo Group’s battery-electric trucks and heavy equipment.
The deconstruction project (that’s kind of like a really careful demolition) marks the first full-scale electric deconstruction of its kind, and serves as important proof that with the right partners and the will to do it, urban construction projects like this can be carried out sustainably, today – and all without fossil fuels. It’s all part of Siemens’ €500 million technology campus redevelopment, the deconstruction site in Erlangen, Germany, and marks a pivotal step in advancing sustainable urban transformation and circular construction practices.
In collaboration with the demolition specialists at Metzner Recycling, Volvo CE deployed a fully electric fleet of equipment assets specially chosen to deliver quiet, precision demolition across the 25,000 cubic meter job site.
As well as deconstruction tasks, the electric machines helped sort and process approximately 12,800 tons of construction waste, with 96% recycled into raw materials for future use – supporting the shift towards circular materials management.
VOLVO CE
“At Siemens Real Estate, we are committed to pushing the boundaries of sustainable construction and demolition,” explains Christian Franz, Head of Sustainability at Siemens Real Estate. “This groundbreaking electric deconstruction project boasts an impressive 96% recycling rate and is a testament to our commitment to achieving excellence in sustainability … this project illustrates how partnerships and determination can create a lasting impact and help shape a more sustainable real estate industry.”
In addition the construction equipment was hauled into the site by Volvo Truck’s battery electric semi trucks, enabling emission-free operations from demolition, to crushing, materials processing, and transport.
Electrek’s Take
With a full line of electric wheel loaders, excavators, articulated haul trucks – even drum rollers and off-grid charging solutions to haul around with their electric semi trucks – Volvo is in a great position to take advantage of increasingly restrictive noise and emission regulations across Europe.
It’s too bad they’re suing California to be able to pollute more.
SOURCE | IMAGES: Volvo CE.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
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Hyundai offered a first look at the hot hatch earlier this week after unveiling the Concept Three, its first compact EV under the IONIQ family. The new EV, set to arrive as the IONIQ 3, already has a sporty, hot hatch look, but that could be just the start.
Hyundai has a new EV hot hatch in the making
The Concept Three took the spotlight at IAA Mobility in Munich with a daring new look from Hyundai. Based on its new “Art of Steel” design, the concept is a stark contrast to the Hyundai vehicles on the road today.
Hyundai took the “Aero Hatch” design to the next level, deeming it “a new typology that reimagines the compact EV silhouette.” And that it does.
When it arrives in production form in mid-2026, it’s expected to take the IONIQ 3 name as a smaller, more affordable sibling to the IONIQ 5.
Hyundai is set to unveil the electric hatchback next spring with an official launch planned in Europe in September 2026. According to Hyundai’s European boss, Xavier Martinet, the IONIQ 3 could make for the perfect EV hot hatch.
Martinet hinted that the IONIQ 3 could receive the “N” treatment, telling Auto Express that “The concept is quite sporty, and obviously you have heritage with N brand.” Hyundai’s European boss added that “it’s a fair topic to consider.”
Although it doesn’t sound too convincing, Hyundai’s head of design, Simon Loasby, called it “an opportunity.” Loasby was quick to add, “We’re not calling it N, it’s not approved yet.”
“But I think everyone in the company is realising what Europe needs, and that’s compact hot hatches, so it’s a topic for discussion,” Hyundai’s design boss added.
The Concept Three is 4,287 mm long, 1,940 mm wide, and 1,428 mm tall, with a wheelbase of 2,722 mm, or about the size of the Kia EV3 and Volkswagen ID.3. Both of which are set for hot hatch variants.
If the IONIQ 3 N does come to life, it will be the third Hyundai EV to receive the high-performance upgrade, following the IONIQ 5 N and IONIQ 6 N.
The IONIQ 5 N “was just the first lap,” according to Joon Park, vice president of Hyundai’s N Brand Management Group. He told Auto Express that Hyundai is “at the starting line” and plans to apply what it learned from its first EV hot hatch to upcoming models.
If you’re looking for an affordable electric hot hatch, Hyundai already offers one. After Hyundai cut lease prices last month, the IONIQ 5 N is now listed at just $549 per month. That’s $150 less per month than in July.
Want to test one out for yourself? You can use our link to find 2025 Hyundai IONIQ 5 models in your area (trusted affiliate link).
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