Foxconn’s Electric Ambitions: A $82 Million Investment in EV Battery Plant
In a significant move to diversify its revenue streams, Foxconn Technology Group, a major Apple supplier, is injecting $82 million into a new electric-vehicle (EV) battery plant in Zhengzhou, China. This investment marks a crucial step in the company’s foray into EVs, semiconductors, and robotics.
A Long-Term Commitment
Foxconn New Energy Battery (Zhengzhou), established in October, will receive the initial capital injection of $47 million through Foxconn New Business Development Group, which fully owns the battery unit. This long-term investment demonstrates Foxconn’s dedication to expanding its presence in the EV industry.
Diversification Strategy
Foxconn’s move into EVs is part of its strategy to reduce dependence on iPhone production, which has faced disruptions in the past. The company has been investing in production globally, including a facility in Ohio, USA, acquired from Lordstown Motors in 2022.
A Growing EV Portfolio
To date, Foxconn has released several EV models, including the Model D multipurpose utility vehicle, the mid-sized electric bus Model U, and the Model C family SUV. The company aims to secure a 5% share of global EV manufacturing by next year, according to Jun Seki, head of Foxconn’s EV business.
Reaffirming Commitment to Zhengzhou
Despite past disruptions to iPhone production in Zhengzhou, Foxconn has reaffirmed its commitment to the region. The company is building a 70,000-square-meter headquarters for its new business and has broken ground on a “trial manufacturing centre” for EVs in the city.
A Global Footprint
Foxconn’s EV factory footprint extends beyond mainland China, with facilities in the US and other regions. As the company continues to expand its presence in the EV industry, its global footprint is likely to grow.
A Bright Future for EVs
With its significant investment in the new EV battery plant, Foxconn is poised to play a major role in the growing EV market. As the company continues to innovate and expand its EV offerings, it’s clear that the future of electric vehicles looks bright.
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