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Foxconn buys Lordstown Motors’ Ohio factory for $230M, plans to help produce Endurance electric pickup – TechCrunch


Electrical light-duty truck producer Lordstown Motors has formally bought its 6.2-million-square-foot Lordstown, Ohio manufacturing facility to Foxconn, the Taiwanese {hardware} manufacturing firm greatest recognized for making Apple’s iPhone. The $230 million deal is anticipated to shut by the top of April subsequent yr, in response to a press release from Lordstown.

The phrases of the deal are according to the settlement in precept the two companies entered into on September 30, after which Foxconn promptly purchased $50 million in widespread inventory instantly from Lordstown at $6.8983 per share. Foxconn is now on the hook for a $100 million down fee by November 18 and subsequent funds of $50 million in each February and April earlier than the ultimate shut focused for April 30, 2022.

Foxconn additionally agreed to pursue a contract settlement with Lordstown to assist the struggling EV firm manufacture its Endurance pickup truck, in response to a press release from Lordstown. The 2 events may also pursue a three way partnership to co-design and develop business fleet automobile packages for North American and worldwide markets. Lastly, as soon as the deal is completed, Foxconn will get 1.7 million warrants to purchase Lordstown widespread inventory at $10.50 per share for the following three years. Lordstown will preserve its electrical motor manufacturing line and battery module and pack meeting traces.

Earlier this yr, Foxconn signed an agreement with electric car startup Fisker to co-develop and manufacture its new automobile below Fisker’s PEAR program in North America. Foxconn has since signaled that Fisker’s automobiles may also be produced on the Ohio manufacturing facility, which Lordstown had bought from Basic Motors again in 2019. With this manufacturing facility buy, Foxconn will get its first automotive manufacturing facility and an enormous shot at increasing past the manufacturing of telephones and laptops.

Lordstown, which is below investigation by each the Securities and Change Fee and the Division of Justice after a analysis agency accused the company of faking EV truck pre-orders, is combating financial woes in addition to the loss of many executives, together with president Wealthy Schmidt, who resigned on Wednesday morning. This deal might assist Lordstown scale back its uncooked materials and element prices. Foxconn has a powerful provide chain community, logistics capabilities and buying powers wanted to assist scale back manufacturing prices and deal with a unstable provide chain. Foxconn can also be an professional at software-hardware integration, which is essential for electrical automobiles.



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