Electric Vehicle Joint Venture Between Saudi Arabia and Foxconn

Foxconn is reportedly in talks with Saudi Arabia to form a joint venture whose mission will likely be to construct electrical vehicles. The transfer might assist the oil-rich kingdom diversify its financial system because the automotive business strikes more and more away from inner combustion engines.

Saudi Arabia’s Public Funding Fund will create a brand new entity named Velocity, which would be the majority stakeholder within the three way partnership, unnamed sources advised Automotive Information. Foxconn will present software program, electronics, and {the electrical} structure for the brand new EVs, however it’ll stay a minority stakeholder within the challenge.

The outlet’s sources added that the three way partnership might use a platform licensed from BMW to construct its EVs. As automakers have invested closely in growing new platforms to maintain tempo with the rising pattern in the direction of electrification, many have sought to offset the prices by licensing their platforms out. BMW additionally beforehand licensed out its X5 platform to Vietnam’s VinFast.

Saudi Arabia has lengthy been keen on diversifying its financial system in an try to forestall itself from being too depending on oil. Establishing a home carmaking business has been a part of that plan, however these makes an attempt have to this point been unsuccessful.

The dominion’s Public Funding Fund took a majority stake in Lucid Motors in 2018 to encourage it to arrange a producing website close to Jeddah. Bloomberg beforehand reported that it additionally employed Boston Consulting Group to discover methods to determine a home EV business. The Saudi fund can also be seeking to develop a battery manufacturing plant that’s focusing on 15 gigawatt-hours of manufacturing per yr by 2028. The plant would offer batteries for Lucid and different producers that set up themselves in Saudi Arabia.

Foxconn, often called a key Apple meeting companion, additionally intends to enter the automotive sector, having unveiled three electrical ideas in October, and lately took over Lordstown Motors’ Ohio plant as a part of a $280 million deal.