Foxconn In Partnership With Gigasolar For EV Battery Components

Taiwanese multinational electronics contract manufacturer, Foxconn announced a partnership with a solar cell material maker, Gigasolar Materials Corp., to develop electric vehicle (EV) battery materials. A Foxconn subsidiary has invested NT$995.2 million (New Taiwan Dollar) which is equivalent to USD 36 million, for the partnership with Gigasolar.

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The investment via a private placement through a Taiwan-based subsidiary will make Foxconn the second-largest shareholder in Gigasolar Material Corp.

According to Foxconn, both companies will jointly develop battery materials for electric cars. This electronic contract company endeavors to provide components or services to 10 percent of the world's electric cars by 2025 to 2027. The company is promising to lower manufacturing and other costs with its assembling know-how as the world's largest contract electronics manufacturer.

Foxconn had aggressive plans to foray into the EV business and hence, the company has recently tied up with Thailand’s government-owned PTT PCL to build electric cars in Thailand. Thailand is a key components hub for the auto sector, and like similar hubs, is in the middle of a process to pivot to the rising ride of electric vehicles to stay relevant.

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Earlier, Foxconn had tied up with Chinese electric-car maker Byton and automakers Zhejiang Geely Holding Group as well as Italian automobile company Stellaris. China is by far the largest EV market in the world, and China-based firms are intent on ensuring they dominate the next phase of EV manufacturing, unlike the ICE age when manufacturing was more spread out worldwide.

Earlier last month, Foxconn had announced that it will make at least 150,000 vehicles a year starting in 2023 in a partnership with U.S. electric car maker Fisker Inc.