Apple supplier Foxconn buys Ohio EV factory for $230 million

San Francisco: The companies have announced that Foxconn, Apple’s largest manufacturing partner, is moving forward with plans to acquire the Lordstown Motors Vehicle Assembly Plant in Ohio for $230 million.

Cash-strapped electric vehicle start-ups will get some respite from capital investment, while the partnership gives Foxconn the start to build a fully electric truck. Lordstown shares rose more than 13 per cent after the news broke, according to a CNBC report.

Foxconn acquired $50 million of common stock directly from Lordstown Motors at a price of approximately $6.90 per share after signing the agreement in September, according to a statement from the companies.

Going forward, Foxconn will make a down payment of $100 million by November 18, then pay another $50 million in February and April, and make a final payment before the end of April.

Once the deal is finally closed, Foxconn will receive 1.7 million warrants to buy more shares of Lordstown at a price of $10.50 per share.

Foxconn has also agreed to pursue a contract manufacturing agreement to assemble Lordstown Motors’ first product, an all-electric pickup truck called the Endurance.

In 2017, Foxconn promised the state of Wisconsin to invest $10 billion in a 20-million-square-foot LCD manufacturing facility there and create 13,000 jobs in the state in exchange for $2.85 billion in subsidies.

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