Taiwan-based manufacturing giant Hon Hai Precision Industry Co. announced Thursday that it had struck a definitive deal to buy the bulk of Lordstown Motors’ electric vehicle assembly plant in Ohio for US$230 million.

In a statement, Hon Hai, also known as Foxconn on the global market, said the US$230 million deal excludes certain assets such as the hub motor assembly line and battery module and pack lines.

The Taiwanese company said it will make a down payment of US$100 million by Nov. 18, and subsequent payments of US$50 million each on Feb. 1 and before April 15, 2022.

“The balance of the purchase price will be paid at closing,” it said.

As a sign of confidence in the partnership, Hon Hai said it has also purchased US$50 million of common stocks directly from Lordstown Motors at a price of US$6.8983 per share.

Under the deal, both companies have agreed to pursue a contract manufacturing agreement for the Endurance pickup truck, which must be entered into before closing, currently targeted for April 30.

Once the deal is finally done, Hon Hai said it will receive 1.7 million warrants to buy more Lordstown shares at a price of US$10.50 per share.

Meanwhile, Hon Hai said the two parties will also pursue a joint venture agreement to co-design and develop vehicle programs for the global commercial fleet market, using Hon Hai’s MIH open platform for electric vehicle (EV) development.

“This partnership marks the commencement of integrating our resources with Lordstown Motors to develop Ohio into Hon Hai’s most important electric vehicle manufacturing and R&D hub in North America,” Hon Hai Chairman Liu Young-way (???) said.

According to Hon Hai, the Lordstown complex had once been one of the largest internal combustion engine automotive plants in North America that has since been converted into an EV manufacturing facility.

The Ohio complex spans 6.2 million square feet and 640 acres.

Source: Focus Taiwan News Channel