Foxconn, Lordstown Motors to pursue U.S. loan for EV factory

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WASHINGTON, Oct 1 (Reuters) – International know-how agency Foxconn and startup Lordstown Motors Corp stated on Friday they plan to pursue a U.S. Vitality Division mortgage from a program to assist pay for the prices of retooling a manufacturing facility to construct electrical vans.

Foxconn agreed in precept to purchase a Lordstown meeting plant in northeast Ohio for $230 million and take over manufacturing of a brand new pickup truck, the businesses stated on Thursday. In January, Lordstown stated it was in superior talks with the division for a retooling mortgage.

Beneath the in-principle settlement, the Taiwanese tech big, also called Hon Hai Precision Business Co , will manufacture Lordstown Motors’ Endurance full-size pickup truck at its Lordstown facility, and it’ll additionally assist start-up automaker Fisker Inc, a Foxconn accomplice and buyer.

Lordstown shares have been down 12.5% in early buying and selling on Friday.

Lordstown informed Reuters in January 2020 it was pursuing a $200 million mortgage from this system and it formally utilized in Could 2020. The Vitality Division’s Superior Expertise Automobiles Manufacturing (ATVM) program, which beforehand awarded loans to Tesla , Ford and Nissan to retool factories, has not made any new loans since 2011.

Lordstown and Foxconn stated in a submitting they are going to every “search a proportionate quantity of the ATVM Mortgage and might be liable for a proportionate quantity of any and all bills incurred in acquiring the ATVM Mortgage.”

The businesses hope to finish a purchase order settlement by Oct. 31 and full the deal by April 30.

Foxconn, the world’s largest contract electronics maker, finest identified for assembling Apple’s iPhone, will make investments $50 million in Lordstown fairness. Lordstown Motors plans to enter right into a long-term lease for a portion of the present facility for its Ohio-based staff, and Foxconn plans to supply employment to many Lordstown staff.

Lordstown, which has struggled to launch manufacturing of its Endurance pickup, had beforehand stated it was in talks to construct autos for different automakers or lease house in its manufacturing facility. It at present makes use of solely 20% of the plant’s 6.2 million sq. ft.

Reporting by David Shepardson; Modifying by Steve Orlofsky


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