Polestar, the electric-car maker managed by Volvo Automotive AB and its proprietor Zhejiang Geely Holding Group Co., is in talks to go public by means of a merger with Gores Guggenheim Inc., a clear check-firm, in accordance with people with info of the matter. 

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

Jennifer Kwon Chou, a Gores Guggenheim marketing consultant, 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 open air of Asian enterprise hours.

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

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

Last month, the company said the Polestar 3 — an SUV — will be built in Ridgeville, South Carolina, in a plant opened by Volvo Cars in 2018. “Manufacturing inside the USA makes procurement further setting pleasant, reduces provide cases and might even have a optimistic affect on the value 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.

The company’s shares rose about 5.3 % to $10.25 at 1:55 p.m. in New York. Earlier they climbed as extreme as $10.48.