Major Apple supplier Foxconn Technology Group is injecting 600 million yuan (US$82 million) into a new electric-vehicle (EV) battery plant in Zhengzhou, capital of central Chinese province Henan, where it runs the world’s largest iPhone factory.
The company, formally known as Hon Hai Precision Industry, on Monday announced its “long-term investment” in Foxconn New Energy Battery (Zhengzhou), which was established in October, according to a filing to the Taiwan Stock Exchange.
The initial capital injection of 350 million yuan was made through Foxconn New Business Development Group, which fully owns the battery unit, it said.
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The move marks the latest step by the Taiwanese giant to diversify its revenue sources with forays into EVs, semiconductors and robotics. It established the Foxconn New Business Development Group in Zhengzhou in June last year, with 1 billion yuan in registered capital, to conduct business in EV sales and battery production.
The Foxtron Model B electric vehicle designed by Foxconn as part of a joint venture. Photo: EPA-EPE alt=The Foxtron Model B electric vehicle designed by Foxconn as part of a joint venture. Photo: EPA-EPE>
A 70,000-square-metre headquarters for the new business is under construction in the city.
Foxconn reaffirmed its commitment to Zhengzhou after its iPhone production there suffered major disruptions late in 2022, when a Covid-19 outbreak led to an exodus of factory workers. The debacle caused shipment delays for Apple during the most important time of the year for its business, prompting the Cupertino, California-based giant to accelerate the shift of some production outside China to areas including India and Vietnam.
On a visit to Zhengzhou in July this year, Foxconn chairman Liu Young-way said the company “attaches great importance to cooperation with Henan” and promised to “continuously be deeply rooted” in the province. That month, the company broke ground on a “trial manufacturing centre” for EVs in Zhengzhou.
Still, Foxconn has been investing in production globally outside mainland China. Its EV factory footprint includes a facility in the US state of Ohio that the company acquired from Lordstown Motors in 2022.
To date, Foxconn has released several EV models, including the Model D multipurpose utility vehicle, the mid-sized electric bus Model U and the Model C family SUV. Jun Seki, head of Foxconn’s EV business, said in an interview with Bloomberg in October that the company aimed to secure a 5 per cent share of global EV manufacturing by next year.
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