Polestar, the electric-car maker managed by Volvo Automobiles and its proprietor Zhejiang Geely Holding Group, is in talks to go public by a merger with Gores Guggenheim, a clear check-firm, in line with people with data of the matter. 

A transaction may well worth the combined agency at spherical $25 billion, the oldsters said. No deal has been reached and it’s potential phrases might change or that talks disintegrate.

Jennifer Kwon Chou, a Gores Guggenheim guide, and a Polestar spokesperson declined to comment. A spokesman for Volvo inside the U.S. didn’t immediately reply to a request for comment. A Geely spokesman didn’t reply to a request for comment exterior of Asian enterprise hours.

Gothenburg, Sweden-based Polestar, led by CEO Thomas Ingenlath, is a rival to Tesla and EV maker Lucid Motors. It had been exploring decisions for going public as early as this yr, Bloomberg Data reported in March.

The company’s second automotive and first all-electric car, the Polestar 2, started manufacturing in March at Geely’s plant in Luqiao, China. In September, the automaker said it would put one different car, the Polestar Precept, into manufacturing. That automotive’s interiors shall be made out of recycled PET bottles and cork vinyl along with reclaimed fishing nets.

Ultimate month, the company said the Polestar 3 — an SUV — will be built in Ridgeville, South Carolina, in a plant opened by Volvo Automobiles in 2018. “Manufacturing inside the USA makes procurement further setting pleasant, reduces provide events and might even have a constructive have an effect on on the price of the Polestar 3 SUV,” Polestar COO Dennis Nobelius said on the time.

Gores Guggenheim, led by Chairman Alec Gores and CEO Mark Stone, is sponsored by associates of Gores Group and Guggenheim Capital. It raised $800 million in a March preliminary public offering.