iPhone manufacturer Foxconn is buying the plant for $230 million.
EV automakers Lordstown and Fisker have both faced challenges over the last couple of years, but that looks set to change following the news that iPhone manufacturer Foxconn will purchase Lordstown's EV factory for the sum of $230 million. Fisker previously announced a partnership with Foxconn for its next car called Project PEAR.
After a disappointing setback involving the development and utilization of solid-state batteries earlier this year, chairman and CEO Henrik Fisker was upbeat about Foxconn's acquisition of the Ohio facility. For cash-strapped Lordstown, the deal is significant as Foxconn has also agreed to build the Endurance pickup truck at the plant. Lordstown has had an even tougher year following a federal investigation and the resignation of both CEO Steve Burns and CFO Julio Rodriguez.
The 6.2-million-square-foot facility was purchased by Lordstown from General Motors in 2019 and it is where the Chevrolet Cruze was once built. Lordstown will remain a tenant at the facility, which is now the first automotive factory for Foxconn.
Fisker, which aims to begin production of its Ocean SUV next year ahead of the Project PEAR car, will also see vehicles being produced at the Ohio plant.
"We welcome the news from Foxconn, our co-investment partner on Project PEAR, concerning their manufacturing plans for the facility in Ohio," said Henrik Fisker in an email to CarBuzz.
"Since signing the agreement with Foxconn earlier this year, we have been working together intensively on all aspects of Project PEAR including design, engineering, supply-chain, and manufacturing," continued Fisker. "Fisker's commitment to volume manufacturing in the United States takes another important step forward today with the signing of this agreement."
With the Taiwanese conglomerate's expansion from electronics into electric vehicles, and now the purchase of a large facility, both Fisker and Lordstown are better positioned to infiltrate the EV market and seriously challenge the segment stalwarts.