Foxconn seals Lordstown’s factory acquisition deal

Taiwan’s Foxconn Technology Group is acquiring an Ohio factory that belongs to Lordstown Motors Corp.

Foxconn has completed the deal to acquire the electric-truck startup’s factory for $230 million.

Lordstown also agreed that Foxconn take over production of its Endurance pickup truck, per a Bloomberg report.

The acquisition is a critical step for the iPhone manufacturer in its bid to diversify into electric vehicles.

Foxconn will invest $55 million for 55% of a joint venture for product development, and will take on approximately 400 Lordstown employees, Bloomberg reports.

The facility will become Foxconn’s EV manufacturing hub for North America.

Foxconn has targeting an expansion in the fast-growing electric-vehicle market with a similar business model, in which it would handle manufacturing for automakers.

On Thursday, EV maker Fisker Inc. reaffirmed its plan to have Foxconn build the upcoming Fisker Pear model at the Ohio factory starting in 2024.

Foxconn previously had made $200 million in down payments toward the purchase.

Foxconn will operate the factory, including some equipment that Lordstown will continue to own, such has its hub-motor assembly and battery module lines.

Lordstown Motors bought the factory in 2019 after General Motors Co. decided to close the plant, which was founded in 1966.