Struggling electric-vehicle startup Lordstown Motors has been thrown a lifeline by Foxconn, the Taiwanese contract producer well-known for constructing the iPhone for Apple.
The 2 corporations on Wednesday introduced that they’ve finalized a previously announced deal that can see Foxconn buy Lordstown’s plant situated in Lordstown, Ohio.
Foxconn can pay $230 million for the plant in a number of funds over the approaching months. Foxconn has additionally already bought $50 million price of Lordstown’s inventory and has the choice to buy an extra 1.7 million shares at a value of $10.50. The choice is open for 3 years.
Lordstown initially bought the plant from Common Motors in 2019, with the purpose of constructing its first product, the Endurance electric pickup truck, on the website. Nevertheless, the corporate hasn’t been in a position to elevate funds essential to get manufacturing going, regardless of it going public in August by way of a SPAC deal.
Lordstown Endurance
Foxconn and Lordstown have additionally agreed to pursue a contract manufacturing settlement that can see Foxconn construct the Endurance for Lordstown on the plant. Foxconn will seemingly be capable of construct the Endurance at decrease value than Lordstown, given its buying energy, provide chain community, and logistics capabilities.
The 2 corporations additionally plan to pursue a three way partnership settlement to co-develop future industrial autos on Foxconn’s own modular EV platform generally known as MIH. Unveiled in 2020, the platform is a modular design that accommodates in-house developed software program and {hardware} methods, and is appropriate for each automotive and SUV our bodies.
“We’re joyful to have fashioned a strategic partnership with an organization as progressive and forward-thinking as Foxconn,” Daniel Ninivaggi, CEO of Lordstown, stated in a press release. “I imagine of their EV technique and look ahead to substantial collaboration sooner or later.”
With the closing of the plant buy settlement, it means Fisker’s Project Pear EV will most certainly even be constructed on the Ohio plant. Fisker CEO and founder Henrik Fisker in October stated the Challenge Pear could be constructed on the plant, pending its profitable sale to Foxconn. The Challenge Pear, which is predicted to be priced under $30,000, will use a model of Foxconn’s MIH platform. It is attributable to begin manufacturing in 2024.
