Net Zero EVs: Polestar's Sustainability Plans for 2030

Polestar has cut emissions per vehicle sold by 31% since 2020 as the Swedish carmaker pursues a goal to manufacture a net zero car without offsets by 2035.

The reduction comes amid growing attention to a persistent challenge in electrification.

While EVs produce lower lifecycle emissions than internal combustion engines, their manufacturing processes still generate substantial carbon output.

Steel and lithium extraction ranks among the most carbon-intensive activities in automotive supply chains.

Renewable energy in production

Polestar attributes its 31% emissions decrease to expanded use of renewable energy in battery production and manufacturing. The company also increased its use of low-carbon materials across vehicle components.

It is aiming to produce a net zero car without offsets by 2035.

Michael Lohscheller, CEO of Polestar, says: "Electrification delivers clear value for customers: lower running costs, lower emissions and greater peace of mind, as volatile oil prices and fuel scarcity mean pump anxiety is increasingly replacing range anxiety."

The spread of clean energy across European electricity grids contributed to the company's emissions profile. According to Michael, cleaner electricity infrastructure makes EVs more practical and accessible for consumers.

"As clean electricity scales, electric vehicles are becoming not just the sustainable choice, but the smarter, more reliable one," Michael adds.

Internal carbon pricing methods

Polestar introduced an internal shadow price of carbon in 2022 to inform procurement and design decisions. This hypothetical cost per tonne of CO₂-equivalent functions as an analytical tool in business cases and material comparisons.

The shadow price helps the company evaluate options with different emission profiles and prioritise decarbonisation actions. Polestar clarified that this internal carbon price does not involve fee collection or fund transfers and will not be publicly disclosed.

Polestar also uses blockchain technology to track raw materials including cobalt, mica, nickel and lithium through its supply chain.

Revenue growth alongside emission cuts

The carmaker reported 34% sales growth in 2025 despite market headwinds. Deliveries exceeded 60,000 vehicles during the period, which could indicate demand for zero-emission mobility among environmentally focused buyers.

Polestar's revenue increased 50% in 2025 compared with the prior 12 months. This performance helped reduce the adjusted post-tax loss to US$783m, a US$297m year-on-year improvement, the company reported.

"If you are not reducing emissions while growing, you are choosing not to," Michael says.

Polestar opened its Mission 0 House in Gothenburg in 2024 to develop zero-emission materials and processes.

The facility focuses on four research areas:

• a large-scale pilot for ultra-low-emission steel
• research on materials for batteries
• the development of bio-based textile alternatives
• technologies to convert CO₂ into new materials.

Fredrika Klarén, Head of Sustainability at Polestar, says: "The Polestar 0 project pushes us into new territory.

"While much of the industry invests in hybrids and combustion engines, we focus on solutions that eliminate emissions entirely. The innovation emerging from this project shows the power of collaboration and material science, and importantly, how well positioned we are to move the industry forward."

Polestar emphasised its commitment to resource efficiency and circular economy principles. The company pursues circular materials, modular designs and mono-material designs to support high-value recovery and quality recycling.

This approach could reduce environmental impact while maintaining the value of vehicles and their components. It could also create circular business opportunities throughout vehicle lifecycles.