Foxconn will build electric vehicles for Lordstown Motors as well as its other partner Fisker Inc. at a former GM factory in Ohio, under an agreement announced Thursday.
Lordstown Motors, the beleaguered electric vehicle company that became publicly traded via a merger with a special purpose acquisition company, said Thursday it reached a nonbinding agreement with Foxconn to sell its 6.2-million-square-foot factory.
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Deliveries to customers in China are also expected to begin in 2023.Lordstown purchased the factory in 2019 from General Motors.
The parties have agreed to explore licensing arrangements for additional pickup truck programs.
Deliveries will begin in Europe and the United States in late 2022, with a plan to reach production capacity of more than 5,000 vehicles per month during 2023.
Reaching a contract manufacturing agreement is a condition to closing the facility purchase.
Since signing the agreement with Foxconn earlier this year, we have been working together intensively on all aspects of Project PEAR including design, engineering, supply chain and manufacturing.
The companies said they will negotiate a contract manufacturing agreement for Foxconn to assemble Lordstown’s Endurance full-size pickup truck at the facility.
Under the agreement, which has yet to close, Foxconn will pay $230 million for the facility. Foxconn will also buy $50 million of Lordstown common stock.
The start of production is still on track to begin in November 2022, the company reiterated in its second-quarter earnings call.
Fisker also has another vehicle program in the works with a different contract manufacturer. The Fisker Ocean SUV will be assembled by automotive contract manufacturer Magna Steyr in Europe.
The deal excludes certain assets such as Lordstown’s hub motor assembly line, battery module and packing line assets and certain intellectual property rights.
Fisker’s commitment to volume manufacturing in the United States takes another important step forward today with the signing of this agreement.
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