Taiwanese electronics manufacturer Foxconn announced on March 15th that it plans to construct electric vehicle (EV) batteries in Ohio and Wisconsin. According to Nikkei, Foxconn Chairman Young Liu revealed during an investor conference that the company intends to build capacity for battery cells, battery packages for energy storage systems in Wisconsin, and battery packages for whole cars in its Ohio facility.
The move comes as part of the US Inflation Reduction Act (IRA) of 2022, which emphasizes investment in domestic energy production and manufacturing. The US government is also eager to increase domestic production of EVs and their components, including batteries, to qualify for tax credits.
See also: iPhone contract manufacturer Foxconn wants to make Tesla electric vehicles
“The timing of the IRA introduction is very good for us. We saw the opportunities in developing battery-related capacity. The US government is also very supportive,” Liu said, according to Nikkei. Liu is also set to travel to North America in a few weeks.
Furthermore, Liu said that Foxconn’s revenue from EV components in 2022 reached NT$20 billion (US$653 billion) and is predicted to increase to between NT$50 billion and NT$100 billion in 2023.
This move by Foxconn marks another significant step in the company’s goal of becoming a major player in the EV industry, especially as the demand for EVs continues to grow worldwide. Foxconn’s plans to establish a domestic manufacturing base for EV batteries also align with the US government’s efforts to promote domestic production, reduce dependence on foreign manufacturers, and secure the nation’s supply chain for critical EV components.
