Foxconn Technology Group, a major Apple supplier, is investing 600 million yuan (US$82 million) into a new electric vehicle (EV) battery plant in Zhengzhou, the capital of Henan province in central China. This initiative, part of its long-term growth strategy, was announced in a filing to the Taiwan Stock Exchange.
The plant will be operated by Foxconn New Energy Battery (Zhengzhou), established in October with an initial capital injection of 350 million yuan from Foxconn New Business Development Group, which fully owns the unit. This move reflects Foxconn’s broader effort to diversify its revenue streams by venturing into EVs, semiconductors, and robotics.
Foxconn New Business Development Group, launched in Zhengzhou in June last year with 1 billion yuan in registered capital, focuses on EV sales and battery production. The company is constructing a 70,000-square-meter headquarters for this division in the city, further underscoring its commitment to Henan province.
The investment comes after significant disruptions to Foxconn’s iPhone production in Zhengzhou in late 2022 due to a Covid-19 outbreak. The resulting worker exodus caused delays in Apple shipments during its peak sales period, prompting Apple to accelerate production diversification to regions like India and Vietnam.
In July, Foxconn chairman Liu Young-way reaffirmed the company’s dedication to Henan, highlighting its strategic importance. During his visit, Liu emphasized Foxconn’s long-term partnership with the province and announced the groundbreaking of a “trial manufacturing center” for EVs in Zhengzhou.
Despite its commitment to Zhengzhou, Foxconn is also expanding its global EV production footprint. Notable investments include acquiring a facility in Ohio from Lordstown Motors in 2022. The company has released several EV models, such as the Model D utility vehicle, the Model U electric bus, and the Model C family SUV.
Jun Seki, head of Foxconn’s EV business, revealed the company’s ambition to secure a 5% share of global EV manufacturing by next year. This aligns with Foxconn’s strategic push into the growing EV market while leveraging its manufacturing expertise and global presence.
With this investment, Foxconn continues to position itself as a key player in the EV industry, solidifying its role in advancing green technology while maintaining strong ties to its manufacturing hubs.
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