The Lordstown electric vehicle company has completed the sale of its Ohio factory to Foxconn, the Taiwanese company that assembles Apple’s iPhone. The factory, which was sold for $230 million, will now become the site of a joint venture between the two companies.
the deal was originally scheduled to close last month, but Lordstown continued to delay the deadline. If the sale had not been completed by May 18, the company would have had to return the $200 million Foxconn put up as a deposit, an amount Lordstown has said it does not have.
The new joint venture will be called MIH EV Design LLC and will be owned 55 percent by Foxconn and 45 percent by Lordstown. Foxconn will commit $100 million to the joint venture, including a $45 million loan to Lordstown, to build a line of electric pickup trucks. Since buying it from General Motors in 2019, Lordstown Motors has invested about $240 million in labor to prepare the factory to build its electric truck, the Endurance.
The deal gives Foxconn its first auto factory and a significant new presence in the US, one the company will use as it seeks to establish itself as a global maker of electric vehicles. Foxconn previously announced a huge LCD panel factory in Wisconsin but has not fulfilled the innumerable promises made to that state.
Foxconn has spent much of the last year talking about expanding into electric vehicles as a way to diversify away from consumer electronics. It has struck deals with companies like Geely, which is China’s largest private automaker, as well as Fisker Inc., a California electric vehicle startup that has yet to make an electric vehicle. Foxconn has also developed its own electric vehicle platform that it intends to sell to other automakers.