Foxconn inks deal to acquire Lordstown Motors’ Ohio plant

Foxconn inks deal to acquire Lordstown Motors’ Ohio plant

Under the agreement, Foxconn would purchase the Lordstown facility, excluding some assets, for $230 million.

Lordstown Motors Corp. and global technology company Hon Hai Technology Group (Foxconn), have reached an agreement in principle to work jointly on Lordstown Motors’ electric vehicle programs in Lordstown Motors’ 6.2 million-sq.-ft. production and assembly plant in Lordstown, Ohio.

Lordstown Motors and Foxconn will use commercially reasonable best efforts to negotiate a definitive agreement pursuant to which Foxconn would purchase the Lordstown facility, excluding Lordstown Motors’ hub motor assembly line, battery module and packing line assets, certain intellectual property rights and other excluded assets, for $230 million.

The agreement between both companies would allow Lordstown Motors to leverage the technology and manufacturing expertise of Foxconn, as Lordstown Motors pursues the production of electric vehicles at its Ohio facility. The companies say the goal of the partnership is to present both Lordstown Motors and Foxconn with increased market opportunities in scalable electric vehicle production in North America.

Following the news that Taiwanese iPhone maker Foxconn acquired Lordstown Motors’ Ohio EV factory, Bakar Sadik Agwan, senior automotive consulting analyst at GlobalData, says the acquisition is a win-win for both parties:

“The acquisition is a milestone for Foxconn’s U.S. EV ambition which came to a standstill with uncertainty looming over the company’s Wisconsin’s manufacturing plant. The purchase of Lordstown Motors’ manufacturing site, which was a GM plant until 2019, will be a turnkey solution for Foxconn’s EV manufacturing that will give it handoff experience in the area. It indicates that a ready plant will garner ‘quick learning’ with ‘less investments’. The GM plant had a capacity to turn around up to 300K units annually, thus providing significant space for Foxconn to expand its capacity in the future.

“Lordstown Motors, which was in deep financial crunch and legal scrutiny recently, will revive with the fresh cash inflow from Foxconn. Lordstown Motors will leverage Foxconn’s technology, manufacturing and supply chain expertise to manufacture its Endurance pick-up truck for the U.S. market.

“As per GlobalData Automotive Intelligence Centre, the ex-GM plant had logged a production capacity of 58K units in 2019. Foxconn may aim 50K annual production – similar to what it committed in its Thailand plant – and expand in later years.

“With the deal, Foxconn may lead ahead of its schedule to manufacture EVs in the U.S. by 2023-end. Foxconn has been negating complexity in EV manufacturing and supply with its partnerships and vertical integration across the value chain. However, it will have to compete with the likes of Tesla, GM and Ford in the U.S. which aims front row in the domestic EV market.”

You May Also Like

EV Connect expands infrastructure partner ecosystem

The $5 billion program aims to facilitate the deployment of DC fast-charging infrastructure.

Ev-Connect-NEVIDashboard

EV Connect announced the expansion of its ecosystem of partners eligible to serve charging network owners and operators participating in the National Electric Vehicle Infrastructure (NEVI) Program from the U.S. Department of Transportation. In collaboration with its extensive network of NEVI-compliant solution partners and service providers, EV Connect said it will deliver EV charging for state-level transportation initiatives.

GenH2 joins the California Hydrogen Business Council

The California Hydrogen Business Council roster includes companies like Chart Industries, BMW, Linde and Trillium.

DOE-Nuclear-Hydrogen 1400
Eaton changes name of its vehicle group & eMobility businesses

Eaton said its newly formed Mobility Group will help meet the evolving needs of both its ICE and EV customers.

eaton-emobility
New CATL LFP battery can add 248 miles of range in 10 minutes

CATL unveils Shenxing LFP battery with 4C superfast charge, 700 km range, innovative cathode, and electrolyte technologies.

CATL Fast charge
Volvo Trucks launches turnkey EV infrastructure program

The program covers charging infrastructure, hardware, software, installation, utility interactions and maintenance.

Volvo EV infrastructure

Other Posts

Autel Adds EV Diagnostics and Maintenance to On-Site Classes

EV training will include classroom and hands-on instruction on servicing electric vehicles’ key components.

autel-academy-ev-training
VinFast Auto and Black Spade complete business merger

Black Spade’s shareholders voted to approve the transaction on Aug. 10.

BorgWarner-Santroll-eMotor-Handshake
GM invests in Mitra Chem’s proprietary AI platform

General Motors invests $60 million in Mitra Chem for AI-enabled battery materials, focusing on iron-based cathodes.

gm-mitra-chem
ConMet acquires assets from Saietta Group’s Netherlands branch

This move involves the integration of intellectual property, along with the acquisition of key personnel, office space, and testing facilities, all under the new entity name — ConMet Netherlands B.V.

ConMet-acquisition-Saietta