Foxconn on the 23rd of June announced the signing of a MOU with Gogoro, where the two companies will become strategic partners in technology and production. This partnership allows Gogoro to elevate its battery swapping technology, as well as the production capability and scale of smart electric scooters. It also allows Foxconn to showcase its high-tech production capability. With the partnership, Foxconn has once again furthered its development of EV batteries and global expansion.
Young Liu, the Chairman of Foxconn, commented that this partnership integrates the advanced battery swapping and smart EV technology of Gogoro with the extensive global production capability of Foxconn to allow Gogoro to establish a smart battery swapping ecosystem and vehicles all over the world. In the midst of the global development of smart electric transportation, the promotion of these innovative options to the consumers in each corner of the world has become a new challenge, which is the first issue that the strategic partnership of Foxconn and Gogoro will resolve.
Foxconn partners with Gogoro to reinforce its development in EV battery technology.
In reality, the partnership with Gogoro not only conforms to the work division trend in brand and manufacturing –which, as constantly emphasized by Liu previously, allows Foxconn to extend its ICT technologies to the EV industry— but also adheres to the “global expansion” idea proposed by Liu.
Gogoro is currently expanding its overseas markets, in addition to focusing on the Taiwanese market. The company announced in April this year its partnership with Hero, the largest scooter manufacturer in the world, to accelerate its shift towards the electric scooter market in India. Furthermore, Gogoro is also working with Yadea, the global leader in electric autocycles, by establishing a PBGN battery swapping system in Hangzhou.
The partnership between Foxconn and Gogoro is not only focused on the battery swapping ecosystem for electric scooters, but is also in line with the former’s arrangement in the core materials of batteries, and helps with Foxconn’s cultivation in the core technology of EV batteries. What is more important is that the partnership will further magnify Foxconn’s global presence in the EV industry. Gogoro is bound to continue expanding its overseas markets, and the global production capability of Foxconn will help the former in providing regional production distribution.
As reported by various news media outlets, Foxconn and Gogoro will simultaneously unfold multiple projects upon signing the MOU, ranging from smart battery swapping systems, vehicle engineering, to manufacturing. Through the assimilation with Foxconn’s substantial production capability, global factory layout, and rigorous quality control, Gogoro is able to place additional emphases on product design, technology R&D, brand marketing, channel expansion, and customer services.
Liu emphasized repeatedly that expanding globally is the key in the arrangement of EVs by Foxconn.
In addition, the partnership is also targeted at the EV strategy of Foxconn by incorporating two wheelers and tricycles on top of four-wheel vehicles, where the electric scooters of Gogoro, tuktuk, mainstream passenger cars, and public electric buses are also included in the planning of Foxconn.
In other words, Foxconn, by working with Gogoro, will extend its partners from four-wheel auto manufacturers to two-wheel smart EVs and battery swapping technology. Apart from actuating the MIH Alliance in the EV field, where more than 1,600 software and hardware partners have been gathered, Foxconn also fully utilizes its advantages of global distribution, integration capability, and speed in the ICT industry to become a partner with many major international auto manufacturers.
Of course, the partnership also facilitates Gogoro’s expansion in the global market. Horace Luke, the founder and CEO of Gogoro, believes that the ability of the company to rapidly increase its production capacity and the fulfilment of global demand is essential for the ecosystem of Gogoro as it continues to propel towards energy replenishment and progresses in the battery swapping system. The partnership with Foxconn is able to satisfy this particular requirement, as well as achieve sustainable electric transportation on a continual basis.
For Foxconn, the partnership with Gogoro is beneficial, as it will enable it to further penetrate into the EV industry with its powerful supply chain system, manufacturing of critical components and parts, R&D of mechanism design, and system integration services. Through the partnership, it will further transform itself into a “vertically integrated service provider” and “smart platform provider”.
The partnership with Gogoro also indicates that Foxconn may perhaps extend its business to the field of electric two wheelers, apart from four-wheel EVs, in order to establish a more immense car manufacturing ecosystem.
(Cover photo source: Foxconn)