Asian Tech Press (SEP 28) -- Volvo Cars said it will make an additional equity investment of up to US$600 million in Swedish electric car maker Polestar.

On Monday, Polestar announced that it will go public through a merger with SPAC (Special Purpose Acquisition Company) Gores Guggenheim, which will value the combined company at about US$20 billion, under the name Polestar Automotive Holding UK Limited, and is expected to be listed on the Nasdaq under the symbol "PSNY."

Polestar and Gores Guggenheim boards unanimously approved the proposed business combination, which is expected to be completed in the first half of 2022.

Volvo Cars said it expects to hold nearly 50 percent of the combined company after completing its additional investment in Polestar.

Polestar is a high-performance electric vehicle brand jointly owned by Volvo Car Group and Zhejiang Geely Holding Group and currently has two production models, Polestar 1 and Polestar 2. Volvo is reportedly Polestar's largest shareholder.

Related article: Volvo's EV maker Polestar to go public via SPAC listing