Hon Hai Precision Industry [2317:TT], commonly known as Foxconn, will establish a joint venture (JV) in Indonesia with local energy company Indika Energy [INDY:IJ] to build electric vehicles (EVs) and batteries, as reported by Nikkei Asia on September 23. Foxconn would invest USD1.75m in the JV initially, with a 40% stake. The new firm, Foxconn Indika Motor, will manufacture EVs in Indonesia as well as develop supporting businesses such as battery making. Furthermore, the two firms will seek a broader investment collaboration with other partners to develop a full EV ecosystem.

According to sources close to the situation, Foxconn Indika Motor will first focus on producing lithium iron phosphate batteries for EVs while working on commercial vehicle manufacturing, such as electric buses. Furthermore, the JV will investigate how to fully utilize Indonesia’s abundant mineral and natural resources to lay a solid platform for future EV battery manufacturing. Foxconn entered the automotive business in 2005 when it purchased a 100% share in AnTec Electric System, a Taiwanese maker of automobile wire harnesses, for RMB350m (USD49m). In 2010, Foxconn began producing auto parts such as touch screen panels for Tesla [TSLA:US]. This May, Foxconn paid USD230m for a vehicle assembly factory in Ohio, US, from EV startup Lordstown Motors. Foxconn CEO Liu Yangwei stated that the company’s goal is to have a 5% market share in the worldwide EV industry by 2025.

Sources:

https://asia.nikkei.com/Business/Technology/Foxconn-forms-Indonesian-JV-for-EV-and-battery-manufacturing

https://www.pingwest.com/a/264767

https://www.leiphone.com/category/transportation/Yyv91wlpC6ayjoUk.html