A potential deal between Geely and Renault could pave the way for Geely's Lynk & Co. brand to reach the U.S.

Geely and Renault in August signed a Memorandum of Understanding for a comprehensive deal that will see them jointly introduce Renault-branded hybrids in China, using vehicle platforms and production capacity supplied by Geely.

The deal will also see the two explore the possibility of building vehicles in South Korea at an existing Renault plant and using a hybrid platform currently found in various Lynk & Co. models, namely the CMA platform for compact cars also found in various models from Geely's Volvo brand.

Lynk & Co. 01 - Euro-spec

Lynk & Co. 01 - Euro-spec

Citing sources familiar with the matter, Reuters reported on Tuesday that the deal is likely to be finalized soon and that it will enable Geely to export models built in South Korea to the U.S. without any tariffs attached, due to a free-trade agreement between the two nations.

According to the sources, one of the models Geely wants to build in South Korea (and potentially export to the U.S. tariff free) is the Lynk & Co. 01. The compact crossover, launched in 2016 as Lynk & Co.'s first model, is currently built in China and would attract tariffs if exported to the U.S. from that location.

Lynk and Co. is a global brand at Geely, though at present it only operates in China and a handful of European countries. Geely had planned to bring Lynk & Co. to the U.S. early on though a spanner was thrown in the works, first by trade tensions between the U.S. and China, and later the pandemic.