Polestar Sticks to Climate Strategy Amid Financial Pressure

Electric vehicle manufacturer Polestar is holding firm to its green strategy, even as it grapples with substantial financial losses. The company reported a doubling of its loss to 4.8 billion Swedish kronor in the first quarter, yet its commitment to sustainability remains unwavering.

Polestar's 2025 sustainability report reveals a 30.9% reduction in relative carbon emissions per car sold since 2020. This achievement is attributed to the use of renewable energy in battery production and a focus on lower-impact materials, particularly aluminum. "Aluminum production is associated with high emissions, so our decision to purchase aluminum produced with hydropower has made a huge difference," said Fredrika Klarén, Polestar's Head of Sustainability.

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Aluminum production is associated with high emissions, so our decision to purchase aluminum produced with hydropower has made a huge difference.

However, the company has pushed back its vision for a completely climate-neutral car, the Polestar 0 project, by five years to 2035. Klarén explained that external factors and a lack of partners in the battery sector have hindered progress. "We have not received partners connected to the battery sector. There are still white spots on the map," she stated.

Despite the delay in the Polestar 0 project, the company's overarching goal of achieving climate neutrality across all its operations by 2040 remains in place. Polestar is also exploring the role of AI in its operations, carefully evaluating new technologies for their sustainability impact. Klarén noted that integrating Google Gemini into their vehicles involved calculating its emissions impact, equating one Gemini search to driving the car 1.3 meters.

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We have not received partners connected to the battery sector. There are still white spots on the map.