Foxconn buys Lordstown Motors’ old GM factory for $230 million

Lordstown Motors gave rides in prototypes of its approaching electric powered Stamina pickup truck on June 21, 2021 as part of its “Lordstown 7 days” celebration.

Michael Wayland / CNBC

Taiwan-based electronics maker Foxconn is relocating in advance with a plan to acquire a Lordstown Motors vehicle assembly plant in Ohio for $230 million, the firms announced on Wednesday.

The dollars-strapped electric auto commence-up will locate some relief from the cash infusion, when the partnership presents Foxconn a jump start off on manufacturing completely electrical vans. Shares of Lordstown rose a lot more than 13% just after several hours on the information.

In accordance to a statement from the firms, Foxconn obtained $50 million of common stock straight from Lordstown Motors at a cost of about $6.90 per share after signing the arrangement in September.

Likely ahead, Foxconn will make a down payment of $100 million by November 18, subsequent payments of $50 million each individual in February and April, and a remaining closing payment in advance of the finish of April.

Once the offer is last but not least shut, Foxconn will get 1.7 million warrants to invest in far more Lordstown shares at a price of $10.50 per share.

Foxconn has also agreed to go after a deal producing agreement to assemble Lordstown Motors’ to start with product or service, an all-electric powered pickup truck called the Stamina.

In 2017, Foxconn promised the state of Wisconsin it would make a $10 billion financial investment in a 20 million-square-foot Liquid crystal display production facility there, and generate 13,000 careers in the state in exchange for $2.85 billion in subsidies. The state, less than previous Gov. Scott Walker and at the urging of the Trump administration, agreed.

Ultimately, Foxconn explained would not be able to satisfy all those claims and pared back its strategies in the point out drastically. It decreased its planned expense there to $672 million from $10 billion, and slice the range of new jobs to 1,454.

As component of that lessened prepare, Foxconn struck a offer with Fisker to produce EVs in the coming decades in Mount Pleasurable, Wisconsin, the web page of the scuppered Liquid crystal display factory.