Foxconn, together with its EV-focused subsidiary, Foxtron Vehicle Technologies Co., have started discussions with Japan’s Nidec Corporation on establishing a joint venture. The JV, headquartered in Taiwan, is expected to be established in 2022, and will focus on the development, production and sales of traction motor systems and various motor-related products for EVs.
Through the joint venture, according to Nidec, the company can learn from Foxconn’s vast experience in global supply chain management and electronics manufacturing. Most importantly, with its target to acquire a 40-45% share of the global EV powertrain market and produce 10 million traction motors by 2030, Nidec also needs Foxconn’s know-how in EV development and its MIH Open Platform.
The decision to form a joint venture is rooted in Foxtron’s existing partnership with Nidec. Earlier this year, Foxtronn already signed a memorandum of cooperation with Nidec, and the two have jointly developed products equipped with Nidec’s traction motor system, E-Axle, for the global market. For Foxconn, the joint venture will also ensure a stable supply of traction motors and other automobile motors for its EV ambition.
According to Andy Lee, General Manager of Foxtron, Nidec possesses the world-leading integrated traction motor system, which is the key for future electric vehicle developments. Years ago, Nidec already foresaw the rise of EV, and had consequently invested in electric drive components and control technologies. Its E-Axle traction motor system, in mass production since April 2019, integrates a motor, an inverter and a reducer.
Its motor products are now covering the range from 50kW to 200kW, which is sufficient for most future electric vehicles.
The initial results and demonstrations of Foxtron’s partnership with Nidec are expected in the fourth quarter of 2021. Meanwhile, Foxconn and Nidec will conduct feasibility studies and contract negotiations with the aim of concluding a joint venture establishment agreement by the end of 2021.