The Polestar 7 will use next-generation electric vehicle (EV) technology from Volvo when it launches in 2028.
Volvo and Polestar, both part of Geely Holding Group, have signed a memorandum of understanding, which will see the manufacturers share components and architecture.
Volvo will provide its next-generation batteries, with improved density and performance, as well as its next-generation of electric motors, developed fully in-house.
The upcoming compact SUV will be manufactured in the Volvo plant in Kosice, Slovakia, which is currently under construction, and will only produce EVs.
Once complete, the factory will be able to produce 250,000 cars per year.
Michael Lohscheller, CEO at Polestar, said: “Working with Volvo Cars to develop and manufacture Polestar 7 in Europe is a unique opportunity that will strengthen our position in our home market.
“Our strategy of utilising Group architectures as the base for our future model line-up gives us access to the best, latest technologies, in a cost-efficient manner.
“With a design and sporty driving characteristics that are instantly recognisable, Polestar 7 will set new standards in the premium compact SUV segment.”
Production of the Polestar 7 will follow the introduction of a related Volvo model.
Sharing the development load will help reduce costs, and will promote better development efficiency.
Polestar will adapt the platform to ensure the performance characteristics and driving experience are in line with what buyers expect from a Polestar.
Håkan Samuelsson, CEO at Volvo Cars, said: “Our collaboration with Polestar on the development and manufacturing of the Polestar 7 underscores how Volvo Cars and Polestar continue to leverage synergies to efficiently deliver outstanding vehicles built for our distinct customer segments.”
The Polestar 7 will also share a software base with the Volvo EX90, EX60, ES90, and the Polestar 3, with continuous improvements throughout the vehicle’s lifecycle through over-the-air updates.
