STOCKHOLM (Reuters) -Sweden-based electric vehicle maker Polestar said on Thursday its upcoming SUV model Polestar 7 will be manufactured at Volvo Cars' under-construction factory in Slovakia, making it its first car to be made in Europe.

Polestar said in a statement the two companies, which are both controlled by China's Geely and its owner Li Shufu, had signed a memorandum of understanding to the effect, and that it plans to launch the model in 2028.

"Polestar is taking the next step in diversifying its contract manufacturing footprint by expanding it to Europe," it said, adding that the move would strengthen its position in its our home market.

Polestar doesn't own factories, its cars are produced at factories owned by Volvo Cars and Geely in China and the United States. One model will also manufactured in South Korea from this year.