Foxconn, a Taiwanese company, operates a custom electric vehicle manufacturing facility in Ohio that it inherited from startup Lordstown Motors, previously owned by GM. At this location Foxconn will start the production of electric vehicles for Lordstown Motors itself as well as for Fisker. Foxconn intends to localize traction battery production in Ohio and Wisconsin to qualify for government subsidies.
How explained Foxconn Chairman Young Liu, battery cells and batteries for stationary storage systems are manufactured at the plant in Wisconsin and traction batteries for electric vehicles in Ohio. The boss of the Taiwanese giant intends to visit North America in the coming weeks. He welcomed the prospects for the company’s business development in the United States given the emergence of the so-called Inflation Reduction Act, which provides for the allocation of subsidies for the construction of enterprises producing traction batteries and electric vehicles. EVs assembled on the continent will also receive a tax deduction for certain categories of US citizens of up to $7,500 per vehicle.
Last year, Foxconn’s EV component sales hit $649 million and could increase fivefold this year. By 2025, the company expects annual sales in this area to reach $33 billion. This year, the company plans to increase investments, as well as in the coming years. This year investments will be made in the markets of the USA, India, Mexico, Vietnam, Thailand and China. Currently, no more than 30% of Foxconn’s manufacturing capacity is located outside of China, but the company’s CEO says that proportion will increase in the coming years. According to Yang Liu, Foxconn’s revenue from assembling consumer electronics such as the Apple iPhone will decline this year from last year. At the same time, the company’s sales in the server, telecommunications and PC segments will grow this year.