Struggling EV company Lordstown accomplished the sale of its Ohio factory to Foxconn, the Taiwanese company that assembles Apple’s iPhone. The factory, which offered for $230 million, will now grow to be the positioning of a joint venture between the two companies.
The deal was originally set to close last month, however Lordstown saved pushing again the deadline. If the sale wasn’t accomplished earlier than May 18th, the company would have had to pay again the $200 million that Foxconn put down as a deposit — an quantity that Lordstown has mentioned it doesn’t have.
The new three way partnership might be referred to as MIH EV Design LLC and might 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 General Motors in 2019, Lordstown Motors has put about $240 million price of work into getting the factory prepared to construct its electrical pickup truck, the Endurance.
The deal offers Foxconn its first automotive factory and a big new presence within the US — one which the company will use because it tries to set up itself as a world electrical car automaker. Foxconn beforehand introduced a large LCD panel factory in Wisconsin but has failed to live up to the myriad promises it made to that state.
Foxconn has spent a lot of the final yr speaking about increasing into electrical automobiles as a manner to diversify away from shopper electronics. It has struck offers with the likes of Geely, which is China’s largest non-public automaker, in addition to Fisker Inc., a California EV startup that has but to make an electrical car. Foxconn has additionally developed its personal electrical car platform that it intends to promote to different automakers.