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The huge potential of the EV marketplace has heightened the resolve of Foxconn as well as its biggest partner Apple to develop an entry plan into the electric vehicle production scene.
The iPhone supplier of Apple Inc (NASDAQ: AAPL), Foxconn Technology Co Ltd (TPE: 2354) has signed a partnership agreement with Chinese EV startup Byton Ltd as well as the Nanjing Economic and Technological Development Zone. According to a Bloomberg report on the matter, the agreement will see Foxconn help supply Byton with its technologies for the mass production of the latter’s flagship electric car, the M-Byte that was unveiled in 2018. The mass production is due in the first quarter of 2022.
The agreement will help Foxconn propound its business diversification plans as it revealed earlier. According to an earlier report by Coinspeaker, the Taiwanese-based technological giant launched its MIH Open Platform that will serve as the Android for electric vehicles. As an open-source platform, the MIH Platform will aid car production companies to use the platform to design a custom-made electric car which will then be produced by Foxconn.
Foxconn shares jumped on the news closing Monday’s session with an 8.6% rise according to the Bloomberg report. This jump is its highest daily gain since April 2019. Each Foxconn stock is now worth 56.10 Taiwanese Dollar.
In the partnership deal with Byton, Foxconn will be investing as much as $200 million in the venture and will help Byton with its expertise in advanced manufacturing technology, operational management experience and will share industrial resources, according to a statement from the companies.
The deal has been widely reported to be a lifeline for Byton, as it is still reeling from the very harsh pangs of the coronavirus pandemic, a situation that forced it to halt its operations and which critically affected its deadlines. With its M-Byte EV, the company may be able to gain a fair market advantage as the car’s specifications if delivered can fuel interests from consumers. Part of the M-Byte’s specifications as detailed on its website includes the car’s ability to attain an 80% charge in 30 minutes, a top speed of 190 kilometers (118 miles) an hour, and a very long range of 550 Kilometers.
Foxconn, Apple Set to Tap into the Big EV Marketplace
The huge potential of the EV marketplace has heightened the resolve of Foxconn as well as its biggest partner Apple to develop an entry plan into the electric vehicle production scene. Apple unveiled its plans to roll out its own version of electric cars by 2024. While it was not spelled out that Foxconn is included in Apple’s auto production plans, the Taiwanese firm is known to supply major car brands including Tesla Inc (NASDAQ: TSLA) with custom-made auto components.
The EV industry is estimated to be worth about $800 billion by 2027 and the current positioning of firms like Foxconn and Apple will give an early advantage to tap into the big marketplace before its full bloom.