Tesla Club Sweden

Swedish carmaker Volvo plans to produce a new premium SUV for its electric Polestar brand at a plant in Charleston, South Carolina, the company said Wednesday.

It will be the first vehicle produced domestically for Polestar, which was formed in 2017 by Volvo Cars and its China-based parent company, Geely Holding Group. It also is expected to be one of the first electric vehicles, if not the first, produced by Volvo in the U.S.

Polestar CEO Thomas Ingenlath said the new Polestar 3 SUV will "absolutely" be the new flagship for the brand as it expands its lineup and retail network in the U.S.

"It will be a big milestone for our brand," he told CNBC during an interview. "The expression of the car will be so much Polestar and show where our brand is going in the future ahead."

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