Polestar’s Mission To Produce a Net-Zero EV by 2035

Transitioning to electrified transport will accelerate businesses’ decarbonisation efforts. But EVs themselves still harbour material and supply chain emissions.

Key components of an EV require materials like steel and lithium, which are among the most carbon-intensive sectors supplying the market. 

Customers are becoming increasingly aware of the impact EVs can have on the environment, even though lifecycle emissions remain lower than those of internal combustion engines. 

The reduction in emissions was the result of the company’s focus on increasing renewable energy use in battery production and manufacturing and on the use of low-carbon materials.

Swedish carmaker Polestar is trying to show what can be done to reduce EVs' carbon footprint. It’s aiming to produce a net‑zero car without offsets by 2035.

“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,” says Michael Lohscheller, CEO at Polestar.

The increase in clean energy use on European grids also contributed to Polestar’s emissions reduction.

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

Shadow carbon price

To support its work to reduce the footprint of its materials, Polestar implemented an internal “shadow price of carbon” in 2022 to aid informed decision-making.

This hypothetical cost per tonne of CO₂-equivalent serves as an analytical tool in relevant assessments and business cases. It primarily compares options with different emission profiles and prioritises effective decarbonisation.

Polestar says this internal carbon price is strictly for decision support and does not involve any internal fee or transfer of funds, nor will it publicly disclose this price. 

The company also leverages blockchain technology to improve traceability of raw materials such as cobalt, mica, nickel and lithium. 

Decoupling emissions

Alongside its environmental achievements, such as its inclusion in Sustainability Magazine’s 2025 Top 250 World’s Most Sustainable Companies list, Polestar continues to grow. 

Earlier this year, Polestar reported 34% growth in 2025 sales, despite challenging market conditions. Robust sales of over 60,000 vehicles suggested that its focus on zero-emission mobility was gaining traction among environmentally conscious buyers. 

This was coupled with a 50% increase in revenue for 2025 compared with the prior 12 months, which 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.

The performance comes as the company continues to expand its presence across key markets while maintaining its environmental commitments.

Mission 0 House

To support its mission of a net-zero EV, Polestar launched its Mission 0 House in Gothenburg in 2024, developing zero-emission materials and processes.

Mission 0 House is working on:

• 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

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

“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 dedication to improving resource efficiency and promoting a circular economy.

Pursuing circular materials, modular, and mono-material designs supports high-value recovery and quality recycling. This approach is essential not only for reducing environmental impact but also for maintaining the value of the cars and their key components and for seizing circular business opportunities throughout their lifecycle.