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Hon Hai raises investments in EV business

25/11/2022 06:38 PM

TAIPEI, Nov 25 (Bernama) -- Taiwan-based manufacturing giant Hon Hai Precision Industry Co has raised investments by injecting funds into its electric vehicle subsidiary as part of its efforts to extend the reach to the EV business, reported CNA (Central News Agency).

In a filing to the Taiwan Stock Exchange, where shares of the iPhone assembler are traded, Hon Hai, also known as Foxconn on the global market, said it has invested an additional US$33 million in Foxconn EV System LLC through another unit, Foxconn EV Technology Inc, as a long-term investment.

However, the extra funds did not change the holding in Foxconn EV System, which is 100 per cent owned by Foxconn EV Technology even before the latest capital injection.

Ahead of the US$33 million investment, Foxconn EV Technology announced on May 30 that it had poured in US$41.93 million into Foxconn EV System, registered in Ohio.

Foxconn EV Technology serves as one of the major entities for Hon Hai to expand its global presence in the EV market.

In November 2021, through Foxconn EV Technology, Hon Hai signed an asset purchase agreement to acquire a factory located in Ohio from American electric pick-up truck brand Lordstown Motors Corp (LMC).

In May 2022, Hon Hai paid US$230 million to buy the Lordstown Ohio factory, making Ohio its first EV manufacturing hub in the US market. It has said the factory could ultimately produce 500,000 to 600,000 vehicles a year.

Also in May, Foxconn EV Technology spent US$55 million to take a 55 per cent stake in MIH EV Design LLC, a joint venture with Lordstown to provide OEM services to its clients.

Earlier this month, Hon Hai announced it will take a stake in Lordstown through a private placement by investing US$70 million to buy the US car maker's Class A common shares and spend an additional US$100 million to purchase its Series A preferred shares.

Just a few days before the deal to acquire a stake in Lordstown, Hon Hai announced it has set up an EV joint venture with a Saudi Arabian sovereign wealth fund – the Public Investment Fund (PIF) – chaired by Crown Prince Mohammed bin Salman bin Abdulaziz. The JV is scheduled to roll out its cars in 2025, and target its home market as well as the Middle East and North Africa (MENA) region.

In Thailand, Hon Hai has set up Horizon Plus Co, Ltd, a joint venture with PTT Public Co, in early February, targeting the Southeast Asian EV markets.




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