Foxconn will invest $170 million in Lordstown Motors by buying some of its shares.
Lordstown Motors will use this money to work on a new electric vehicle.
Due to financial difficulties, Lordstown Motors sold its factory to Foxconn, which currently builds the Lordstown Endurance.
iPhone maker Foxconn has agreed to spend around US $170 million in Lordstown Motors shares in order to fund its partner’s future electric vehicle project.
Both companies have been working together for a while already since Foxconn is tasked with the production of the Lordstown Endurance electric pickup truck, which will be delivered to its first customers by the end of the year.
This unusual arrangement came about after Lordstown Motors ran into financial problems and decided to sell its factory in namesake Lordstown, Ohio to Foxconn in exchange for its expertise in terms of manufacturing.
Now, both companies have announced that Foxconn will further its place in the partnership by buying about $170 million’s worth of Lordstown Motors shares.
This will leave Foxconn with all of Lordstown Motors’ preferred stock and 13,8% of its common stock, meaning it will be in a position to appoint two members to the automaker’s board.
Lordstown Motors says that about $70 million of this investment will be used to fund a new EV project that could result in a second model joining the Endurance pickup in the coming years.
Despite the two companies working closely together, this future model will be developed entirely by Lordstown Motors.
This is because the proposed joint venture between Foxconn and Lordstown Motors has been replaced by this new financing agreement, meaning that the manufacturing specialist will not be implicated in the development process of the new EV after all.
No details are currently known about this electric vehicle project, which means that it could be another kind of electric truck or any other type of battery-powered vehicle.
