The expansion of client base through an acceleration on the commercial operation and mass production of EVs is one of Foxconn’s six major operation principles for 2022, as well as a segment that draws significant market attention. Foxconn announced on April 8th that the company has invested a total of US$39 million (approx. NT$1.127 billion) into its subsidiary Foxconn EV Technology Inc, with equity obtained, through Foxonn eMS Inc. and Westex Corporation, for long-term investment purposes.
As indicated by the announcement of Foxconn, Foxconn eMS Inc. and Wexteq Corporation have invested in Foxconn EV Technology Inc. with equity obtained at the same time. Among which, the former has invested US$25 million with a shareholding ratio of 10.9%, while the latter has invested US$14 million with a shareholding ratio of 6.1%.
Aside from Foxconn eMS Inc. and Wexteq Corporation, Foxconn EV Technology Inc. is also backed by PCE Paragon Solutions Kft. (54.3% of shareholding ratio), Foxconn Assets Management LLC. (22.6% of shareholding ratio), eCMM Services Inc. (3.5% of shareholding ratio), and Foxconn Corporation (2.6% of shareholding ratio).
Foxconn EV Technology Inc. is an essential subsidiary for Foxconn in deploying overseas EV businesses, and the increase of capital this time is regarded as a preparation for actuating its EV business.
Foxconn had signed for the final asset purchase agreement on the Ohio plant with US-based commercial electric truck manufacturer Lordstown Motors in November last year, which utilizes Foxconn EV Technology Inc. as the main body of investment. The agreement states that Lordstown Motors sold its Lordstorn plant and equipment to Foxconn for US$230 million.
(Cover photo source: Foxconn)