EV firm Lordstown completes $230 million sale of its Ohio manufacturing unit to Foxconn

EV company Lordstown completes $230 million sale of its Ohio factory to Foxconn

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Struggling EV firm Lordstown accomplished the sale of its Ohio manufacturing unit to Foxconn, the Taiwanese firm that assembles Apple’s iPhone. The manufacturing unit, which offered for $230 million, will now develop into the location of a three way partnership between the 2 corporations.

The deal was initially set to shut final month, however Lordstown stored pushing again the deadline. If the sale wasn’t accomplished earlier than Could 18th, the corporate would have needed to pay again the $200 million that Foxconn put down as a deposit — an quantity that Lordstown has stated it doesn’t have.

The brand new three way partnership will probably be referred to as MIH EV Design LLC and will probably be 55 p.c owned by Foxconn and 45 p.c by Lordstown. Foxconn will commit $100 million to the three way partnership, together with a $45 million mortgage to Lordstown, to construct a lineup of electrical pickup vans. Since shopping for it from Basic Motors in 2019, Lordstown Motors has put about $240 million price of labor into getting the manufacturing unit able to construct its electrical pickup truck, the Endurance.

The deal offers Foxconn its first automotive manufacturing unit and a major new presence within the US — one which the corporate will use because it tries to determine itself as a worldwide electrical automobile automaker. Foxconn beforehand introduced an enormous LCD panel manufacturing unit in Wisconsin however has didn’t stay as much as the myriad guarantees it made to that state.

Foxconn has spent a lot of the final yr speaking about increasing into electrical autos as a option to diversify away from shopper electronics. It has struck offers with the likes of Geely, which is China’s largest personal automaker, in addition to Fisker Inc., a California EV startup that has but to make an electrical automobile. Foxconn has additionally developed its personal electrical automobile platform that it intends to promote to different automakers.

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