Foxconn invests $82M in EV battery plant in Zhengzhou
The move is another attempt by Foxconn to diversify beyond its iPhone business with forays into sectors such as EVs, semiconductors and robotics, the South China Morning Post report indicates.
Apple supplier Foxconn is injecting 600 million yuan (around USD 82 million) into a new EV battery facility in China, according to the South China Morning Post (SCMP).
The Taiwanese giant announced its long-term investment in Foxconn New Energy Battery (Zhengzhou) in the Chinese province of Henan, according to a filing to the Taiwan Stock Exchange.
The move is being seen as another attempt by Foxconn to diversify beyond its Apple iPhone business with forays into sectors such as EVs, semiconductors and robotics, the SCMP report indicates.
Foxconn’s iPhone production in Zhengzhou was disrupted in 2022 after a Covid outbreak led to an exodus of factory workers. Ever since, the Taiwanese company has been at pains to reaffirm its commitment to Henan and its capital, Zhengzhou.
In July, the company broke ground on a trial manufacturing centre for EVs in the city.
In January, Foxconn created the Foxconn New Energy Automobile Industry Development Co. to formalize its move into the EV market. It also created a specialized EV supply chain, and acquired the former General Motor Co plant in Lordstown, Ohio. In 2021, it unveiled three electric vehicle prototypes made by Foxtron, a joint venture between Foxconn and Taiwanese car maker Yulon Motor Co Ltd.
Foxconn’s EV ambitions have slowly but surely taken shape through ventures with Byton, XPeng Motors and CATL. In 2021, Foxconn introduced its Model C, Model E, and Model T vehicles to demonstrate its manufacturing capabilities. This was followed by other launches to build credibility in the EV sector.
According to some media reports, the historic decision by Japanese carmakers Nissan and Honda to enter into merger talks was partly driven by Foxconn’s behind-the-scenes moves to acquire a big chunk of shares in Nissan.
