Volvo Car subsidiary Polestar will begin building full-electric vehicles in the U.S. late next year, the company said in a statement.
Polestar will assemble a Porsche Cayenne-sized crossover at Volvo's $1.1 billion South Carolina factory.
The production foray comes as Polestar works to establish a toehold in the U.S. with the introduction of the Polestar 2 fastback, introduced late last year.
Polestar intends to be a global brand, CEO Thomas Ingenlath told Automotive News Europe sister publication Automotive News.
"The plan has been to expand our footprint in terms of where we produce our cars," Ingenlath said. "This is the great moment where we actually prove it."
U.S. production of the Polestar 3 puts the model closer to its primary market. Crossovers are the fourth-fastest-growing vehicle segment in the U.S., with market share up 3.9 percentage points in the past two years, according to the Automotive News Research & Data Center.
Ingenlath said the Polestar 3 is the "next milestone" for the company.
"It is an ambitious car and will show where we are headed with this brand," he said.
The five-seater should have a range of more than 300 miles (480 km) and will offer eyes-off, hands-off autonomous driving capability once that technology is approved for use. The dual-motor midsize crossover will compete with the Jaguar I-Pace and Audi E-Tron.