Foxconn, which makes iPhones for Apple, says it is deepening its investment in the American electric pickup truck firm, which could challenge Tesla’s Cybertruck.
The technology giant is spending up to $170m (£147.8m) on a stake in loss-making start-up Lordstown Motors.
The significant cash injection comes as the company aims to ramp up production of its first model, the Endurance.
Lordstown recently began building the vehicle at a former General Motors plant in the US state of Ohio.
Under the deal, the world’s largest electronics contract manufacturer bought more than 18 percent stake in Lordstown, making it the largest investor in the company.
“Since announcing our first transaction with Foxconn more than a year ago, our goal has been to develop a comprehensive strategic partnership that leverages the capabilities of both companies,” said Lordstown Executive Chairman Daniel Nenewagi. “
“Foxconn’s latest investment is another step in that direction,” he added.
The two companies also said they will jointly develop an electric vehicle, although they did not give further details of the project.
The deal comes after the world’s largest electric car maker, Tesla, owned by billionaire Elon Musk, reported earlier this month that it would begin mass production of its Cyber ​​Truck by the end of 2023. Planned to do.
That would be two years after the original target of the highly anticipated pickup truck that Mr. Musk unveiled in 2019.
The investment by Taiwan-based Foxconn is the latest cash injection into Lordstown as it continues to run at a loss.
Separately on Monday, figures for the three months to the end of September showed a net loss of $154.4m, higher than the $95.8m loss the company reported for the same period last year.
Lordstown shares rose about 18 percent in extended trading in New York after the announcements.
Last week, Foxconn agreed to a deal with Saudi Arabia’s sovereign wealth fund to build electric vehicles in the kingdom.
The joint venture will operate under the name Ceer, which sounds like the Arabic word for “drive.”
Ceer will license the technology from Germany’s BMW and aims to start selling its electric vehicles from 2025.
The deal is part of Saudi Arabia’s push to move its economy away from fossil fuel dependence.
Last month, Foxconn Chairman Liu Young-way said he hoped the company would one day make cars for Tesla as it ramped up production of electric vehicles.
Speaking at the company’s annual Tech Day, he said the firm aims to replicate its success in manufacturing consumer devices as it expands into making electric vehicles for the motor industry’s biggest brands.
