(ATF) Foxconn has teamed up with electric vehicle (EV) startup Fisker to build a factory in the United States with a goal to start producing vehicles in late 2023.
The companies said in a joint statement that they have signed framework agreements to jointly develop an affordable “breakthrough” EV.
Foxconn, formally known as Hon Hai Precision, is the world’s largest contract electronics maker and assembles Apple’s iPhones and gadgets for other major international brands.
But it has also been looking to diversify beyond electronics assembly, specifically electric cars, robots and digital healthcare.
Chairman Liu Young-way said Foxconn ploughed about NT$10 billion ($355 million) into electric car development in 2020, and expects investment to rise over the next two years.
Foxconn announced a joint venture with Chinese automaker Zhejiang Geely Holding Group in January to provide car makers with production and consulting services.
“We view Hon Hai’s cooperation with Fisker as another milestone for Hon Hai in EV whole car development and manufacturing following its earlier cooperation with Geely,” said Kylie Huang, equity analyst at Daiwa Securities in Taipei.
The partnership with Foxconn would enable Fisker to deliver products “at a price point that truly opens up electric mobility to the mass market,” said chairman and chief executive officer Henrik Fisker.
The starting price for the vehicle will be under $30,000 with a projected annual volume of more than 250,000 units in multiple sites, according to the statement.
The cars will be sold under the Fisker brand in North America, Europe, China, and India.
“We believe Hon Hai’s recent strong progress in EV with cooperative ventures with various parties should help it accelerate its progress in business transformation,” Huang said.
With reporting by Reuters