Lordstown Motors gave prototypes of its upcoming Electric Endurance pickup on June 21, 2021 as part of the “Lordstown Week” event.
Michael Wayland / CNBC
Taiwan-based electronics maker Foxconn is moving forward with a plan to buy a $ 230 million Lordstown Motors vehicle assembly plant in Ohio, the companies announced Wednesday.
The cash start-up of electric vehicles will find some relief from the capital injection, while the partnership gives Foxconn a jump start on producing all-electric trucks. Shares in Lordstown rose more than 1[ads1]3% after hours on the news.
According to a statement from the companies, Foxconn bought $ 50 million of common stock directly from Lordstown Motors at a price of around $ 6.90 per share after signing the agreement in September.
Going forward, Foxconn will make an advance payment of $ 100 million by November 18, subsequent payments of $ 50 million each in February and April, and a final final payment before the end of April.
When the deal is finalized, Foxconn will receive 1.7 million warrants to buy more Lordstown shares at a price of $ 10.50 per share.
Foxconn has also agreed to pursue a contract production agreement to assemble Lordstown Motors’ first product, an all-electric pickup called Endurance.
In 2017, Foxconn promised the state of Wisconsin that it would invest $ 10 billion in a 20-million-square-foot LCD production facility there, creating 13,000 jobs in the state in exchange for $ 2.85 billion in subsidies. The state, under former Gov. Scott Walker and at the urging of the Trump administration, agreed.
In the end, Foxconn said he would not be able to fulfill those promises and dramatically reduced plans in the state. It reduced its planned investment there to $ 672 million from $ 10 billion, cutting the number of new jobs to 1,454.
As part of the reduced plan, Foxconn entered into an agreement with Fisker to produce electric cars in the coming years in Mount Pleasant, Wisconsin, the site of the extinct LCD plant.