Lordstown Motors Corp., a provider of electric light duty trucks focused on the commercial fleet market, and Foxconn, the world’s largest contract electronics manufacturer, announced that it had reached an agreement in principle to work jointly on Lordstown Motors’ electric vehicle programs in Lordstown Motors’ production and assembly plant in Lordstown, Ohio.
At the same time, Foxconn purchased approximately $50 million of Lordstown Motors’ common stock directly from Lordstown Motors at a price of $6.8983 per share. Foxconn has agreed to retain these shares for a specified period.
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 goal of the partnership is to present both Lordstown Motors and Foxconn with increased market opportunities in scalable electric vehicle production in North America.
As a part of the agreement, Foxconn would manufacture Lordstown Motors’ Endurance full-size pickup truck at its Lordstown facility. Lordstown Motors would also agree to provide Foxconn with certain rights with respect to future vehicle programs.
Speeding up Foxconn’s EV program
Young Liu, Foxconn chairman, commented “We have high expectations through this partnership that we will be able to successfully integrate our resources with Lordstown Motors. In addition to achieving the goal of moving ahead our timeline to establish electric vehicle production capacity in North America, it also reflects Foxconn’s flexibility in providing design and production services for different EV customers. This mutually beneficial relationship is an important milestone for Foxconn’s EV business and our transformation strategy. I believe that the innovative design of the Endurance pickup truck, with its unique hub motors, delivers an advantageous user experience and has manufacturing efficiencies. It will undoubtedly thrive under our partnership and business model.”
In addition, this facility would serve as a speed to market asset that would also support Foxconn’s partner and customer, Fisker Inc.
Daniel Ninivaggi, Chief Executive Officer of Lordstown Motors Corp., stated “We are excited about the prospect of joining forces with a world-class smart manufacturer like Foxconn and believe the relationship would provide operational, technology and supply chain benefits to our company and accelerate overall scaled vehicle production and increase employment in the Lordstown facility. The partnership would allow Lordstown Motors to take advantage of Foxconn’s extensive manufacturing expertise and cost-efficient supply chain, while freeing up Lordstown Motors to focus on bringing the Endurance to market, developing service offerings for our fleet customers and designing and developing innovative new vehicle models.”