olestar Cuts Emissions Per Vehicle by 31% While Expanding Global EV Business
Polestar has reported a 31% reduction in greenhouse gas emissions per vehicle sold since 2020, underscoring a strategy focused on decoupling business growth from environmental impact as the electric vehicle market continues to expand.
The figures, published in the company’s 2025 Sustainability Report, show that Polestar has achieved these reductions while significantly scaling its operations. Over the same five-year period, the company increased annual sales to more than 60,000 vehicles, expanded into 28 markets, and introduced multiple new models, alongside establishing manufacturing across three countries.
The decline in emissions intensity is largely attributed to increased use of renewable energy in battery production and manufacturing, as well as the integration of lower-carbon materials across its supply chain. The growing share of the Polestar 4—currently the company’s lowest-emission model—has also contributed to the overall improvement. In addition, the expansion of renewable electricity across key markets, particularly in Europe, has reduced emissions associated with vehicle use.
Chief Executive Michael Lohscheller emphasised that emissions reductions must accompany growth, framing electrification as both an environmental and economic advantage amid volatile fossil fuel markets. The company continues to track ahead of its emissions reduction targets as it works toward its goal of becoming climate-neutral by 2040.
A central component of Polestar’s long-term strategy is the “Polestar 0” project, which aims to develop a fully climate-neutral car without relying on carbon offsets by 2035. Research efforts are coordinated through the Mission 0 House in Gothenburg, where collaborations between industry and academia are focused on eliminating emissions from materials and manufacturing processes.
Recent developments from the initiative include progress on ultra-low-emission steel, advances in battery materials, and the exploration of bio-based textiles and carbon capture technologies that convert CO₂ into usable materials. The programme has secured significant funding and brings together multiple universities and corporate partners, reflecting the scale of innovation required to achieve fully net-zero vehicles.
As the automotive industry faces increasing scrutiny over lifecycle emissions, Polestar’s approach highlights a broader shift toward measuring and reducing carbon intensity across the entire value chain. The company’s latest results suggest that sustained emissions reductions can be achieved alongside commercial expansion, positioning electrification as a central pillar in the transition to low-carbon transport.
