The technology company that produces the Apple iPhone has invested $170 million towards a joint EV program.
Lordstown Motors has had a torrid time entering the electric vehicle market, but thanks to Apple iPhone manufacturer Foxconn, things are slowly improving. Following the good news in May of this year that Foxconn would invest in the company and take ownership of Lordstown's Ohio assembly plant, the pair have now revealed that the original investment is swelling.
Foxconn will make "additional equity investments" in the form of $70 million of so-called Common Stock and up to $100 million of Preferred Stock, which "replaces the joint venture funding previously announced by Foxconn and LMC."
Lordstown says that it will use the proceeds from the sale of the Common Stock for general corporate purposes, but the money raised by the Preferred Stock will "fund development and design activities for a new electric vehicle program in collaboration with Foxconn."
Executive Chairman of Lordstown Motors Daniel Ninivaggi said, "Since announcing our first transaction with Foxconn more than a year ago, it has been our objective to develop a broad strategic partnership that leverages the capabilities of both companies."
The company's CEO and President, Edward Hightower, noted the impact that Foxconn's involvement has had: "Over the last year, the LMC and Foxconn teams have worked collaboratively to bring the Endurance into commercial production, despite numerous external challenges. We acknowledge and appreciate the confidence in our team that is shown by this investment. The combination of LMC's experienced vehicle development team, Foxconn's growing EV ecosystem, the MiH platform, and our asset-light business model will allow us to bring great EVs to market faster and more efficiently."
It seems likely that this new EV will be a commercial vehicle since that is the sector Lordstown has decided to focus on.
Foxconn does not seem to have any particular preference. The automaker has been involved with Foxconn for over a year now but has also pursued other projects, like building Fisker's EVs. The company has also stated that it wants to produce vehicles for numerous other automakers. It has specifically shown an interest in producing Teslas, extending an olive branch to the company for a potential future collaboration, which could prove to be a beneficial agreement for both parties.
It seems that Lordstown will have more financial freedom to expand and refine its EVs, which could one day mean a mainstream offering beyond the Endurance pickup. Foxconn, meanwhile, will get better and better at producing EVs thanks to partnerships like this one, and as it expands, both companies should reap rewards.