There's Some Good News About The Lordstown Endurance

Lordstown Motors, which calls itself an OEM of electric light-duty focused on the commercial fleet market, recently announced that it had signed a contract agreement with the Hon Hai Technology Group. The latter trades under the Foxconn name and is best known for manufacturing Apple's iPhone.

The contract is an asset purchase agreement, which will see Foxconn take ownership of Lordstown's Ohio-based assembly plant for a mere $230 million.

The contract came with several conditions, the most important of which is that Lordstown's EV pickup, the Endurance, would be built at the facility.

We thought the Endurance project was dead since the manufacturer got nabbed for not paying taxes, which led to the CEO resigning. Since then, it has been a bad series of unfortunate events.

Foxconn and Lordstown also entered into a joint venture agreement to co-develop EV programs using Foxconn's existing Mobility-in-Harmony platform. This joint venture will be known as MIH EV Design LLC, and the ownership will be split 55/45 in Foxconn's favor. Given Lordstown's history of bad choices, that's the best possible setup.

As we reported earlier this week, Lordstown needs $150 million to get the Endurance to customers. To help with that goal, Foxconn is committing an additional $100 million to the joint venture. It's also giving Lordstown a $45 million loan.

Once that milestone is reached, the two companies can focus on the primary mission, which is developing an MIH platform and building new electric vehicles on it. The Lordstown vehicles will compete in the US commercial market, but the facility will also build cars for other OEMs locally and internationally. The Endurance will go up against rivals like the Ford F-150 Lightning and Rivian R1T.