Polestar gets $1.6 billion boost from other big stakeholder Volvo

polar star On Thursday, it said it had secured $1.6 billion in funding from its two main shareholders to deliver on its growth plans amid volatile markets.

volvojointly established a brand with a Chinese brand Geely In 2017, it announced an $800 million loan to the company. Another major shareholder, his PSD Investments, will provide the same amount through “direct and indirect financial and liquidity support,” Polester said.

Volvo, which owns over 48% of Polestar’s stake, said the company’s loan includes an option for Volvo to convert part of the loan into equity, with Polestar potentially raising equity in the future. said.

“We welcome the continued support of our major shareholders during this volatile and unpredictable time in the capital markets,” Polestar CEO Thomas Ingenrath said in a statement.

The Swedish-based automaker said the funding, alongside previously secured resources, will provide the company with sufficient funding by 2023.

In June, Polestar went public on the Nasdaq through a merger with Special Purpose Acquisition Company (SPAC).

Volvo, like other major automakers, has invested heavily in its own car makers in recent years. Electric car He also said he is dedicated to supporting Polestar.

Volvo aims only for full sales Electric car By 2030, Polestar aims to launch three more cars by 2026.

Established a joint venture with Volvo in February. battery Manufacturer Northvolt will build a battery plant in Gothenburg to produce battery cells specifically for Volvo and Polestar electric vehicles.

But automakers and suppliers are struggling as costly investments in an electric future are matched by rampant inflation and soaring energy prices.

Polestar’s third quarter results will be released on November 11th

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