Volvo Explores Building Geely EVs in South Carolina Plant Amid Regulatory Hurdles

Volvo is open to building Geely electric vehicles (EVs) at its Ridgeville, South Carolina plant, according to CEO Håkan Samuelsson. The facility, which opened in 2018, has been underutilized since transitioning from the slow-selling S60 sedan to the even slower-selling EX90 and Polestar 3.

The plant is set to add the XC60 later in 2024, but Volvo is exploring further options to maximize capacity. Samuelsson told Business Insider that building Geely vehicles at the plant is possible due to excess capacity, though any such move would require Geely to navigate stringent U.S. regulatory hurdles.

Geely has previously indicated plans to enter the U.S. market within the next two to three years. Establishing production at Volvo’s Ridgeville facility could be a strategic step toward achieving that goal.

Regulatory Barriers to Chinese EVs in the U.S.

Long before recent tariffs, U.S. policymakers implemented measures to restrict Chinese vehicles. In the final days of the Biden administration, the Department of Commerce finalized a rule banning the sale and import of connected vehicle hardware, software, and completed vehicles from China and Russia.

Additionally, the Biden administration increased the tariff on Chinese-made EVs from 25% to 100% in 2024. The Department of Commerce stated the move aimed to “protect American manufacturers from China’s unfair trade practices” and ensure “the future of the auto industry will be made in America by American workers.”

While producing EVs in the U.S. could help Geely avoid these tariffs, political opposition remains a significant obstacle. Any attempt by Geely to establish a U.S. presence—whether through Volvo’s plant or otherwise—could face pushback from lawmakers seeking to further restrict Chinese automotive influence.