Polestar's U.S. Waiver Request Denied, While Geely-owned Volvo Gets Approval

In June 2025, the U.S. Department of Commerce denied Polestar’s exemption request under the connected vehicle technology regulations. Polestar had submitted its application to the Department’s Bureau of Industry and Security (BIS) in May 2024 and, over the following year, cooperated fully with multiple rounds of inquiries, proposing measures including enhanced cybersecurity reviews, adjustments to data storage arrangements, and safeguards to prevent Chinese-affiliated entities from managing vehicle data. In January 2025, Commerce Department officials informed Polestar’s external counsel that they had gathered sufficient information and were preparing to recommend approval. In April 2025, Jeffrey Kessler, Under Secretary of Commerce for Industry and Security, stated that if Volvo received an exemption, it would be reasonable to expect Polestar to receive one as well. In May 2025, Volvo was granted an exemption—but Polestar’s application was rejected the following month. The Polestar 3 shares its software architecture and most hardware components with the Volvo EX90 and is produced on the same assembly line. The denial stems from connected vehicle rules enacted during the Biden administration, aimed at preventing foreign adversaries—including China and Russia—from accessing sensitive information or remotely manipulating systems through connected vehicles. The Department of Commerce has not publicly explained why it reached different decisions for Polestar and Volvo.