Polestar, the Geely-owned electric performance car company, says it has raised USD550 million  from a group of long-term financial investors.

The private placement of newly issued shares come as the global market for electric cars is growing with the technology behind electric cars advancing and coming down in cost.

Polestar says these factors led to Polestar attracting considerable interest from a range of external investors as part of its fund-raising activities. Polestar also confirmed it is in ongoing discussions with global investors about possible additional fund raising.

Full financial details of the transaction are not being disclosed at this stage.

The group of investors is led by Chongqing Chengxing Equity Investment Fund Partnership, Zibo Financial Holding and Zibo Hightech Industrial Investment. They have been joined by I Cube Capital, an arm of SK Inc., the South Korean global conglomerate, and a range of other investors.

Polestar says the new investment sets the stage for future growth by diversifying Polestar's funding structure and deepening the pool of resources available to accelerate product development and technological capabilities 'ahead of launching several ground-breaking cars in the coming years'.

"Our new investors have recognized that Polestar offers an alluring combination of established industrial and technological capability alongside superlative growth potential as the global auto industry goes electric," said Thomas Ingenlath, CEO of Polestar.