Foxconn plans to build a complete electric vehicle ecological chain in Taiwan

Foxconn plans to build a complete electric vehicle ecological chain in Taiwan

Foxconn plans to build a complete electric vehicle ecological chain in Taiwan. Foxconn has decided to build a battery and energy storage system factory in Taiwan, China. To create a complete ecosystem locally. Foxconn plans to build a complete electric vehicle ecological chain in Taiwan. Foxconn plans to build a complete electric vehicle ecological chain in Taiwan 1

According to foreign media reports, Foxconn recently stated that it will produce battery packs and batteries for the first time in a new factory in southern Taiwan, China, to support key materials in the electric vehicle industry. gain more control over their supply. Foxconn also revealed that it plans to establish a battery pack, battery and energy storage system factory in Kaohsiung, where it will design and assemble electric public vehicles.

It is worth noting that at the beginning of last year, Byton signed a strategic cooperation framework agreement with Foxconn Technology Group and Nanjing Economic Development Zone to promote the mass production and manufacturing of Byton’s first model M-Byte. The project was halted due to funding issues with Byton.

On October 18 last year, Foxconn officially launched the pure electric vehicle brand Foxtron and launched three new vehicles, namely Model C, Model E and Model T.

In November 2021, Foxconn announced that it had agreed to formally acquire the Ohio factory of Lordstown Motors, a new American car-making force. In addition, Foxconn has also agreed to OEM the Endurance electric pickup truck owned by Lordstown Motors. Lordstown will also continue to rent space at the Ohio factory and develop vehicles on Foxconn's new electric vehicle platform.

Analysts believe that "Foxconn has many years of experience in manufacturing iPhones, and has relatively excellent ECU manufacturing and integration capabilities, as well as supply chain management capabilities." Foxconn's move is undoubtedly a step forward after entering the automotive industry. Measures to control the industrial chain. The White House's previous supply chain assessment report pointed out that batteries are one of the most critical components of electric vehicles, and it is of great significance to strengthen control over battery supply.

Faced with the rapid release of demand, currently, domestic power battery manufacturers generally still have insufficient production capacity. Due to the rapid growth of demand for power lithium batteries from new energy vehicles on the demand side, there is a supply shortage on the supply side. Therefore, This has resulted in a global shortage of power batteries.

At this stage, the global supply of power batteries is in a tight state, which will inevitably lead to more expansion plans of power battery manufacturers. The demand for further control of battery supply by automobile manufacturers is also becoming stronger. Self-built and joint ventures Building battery factories has become an important way to strengthen control of the battery industry chain.

In 2020, Tesla’s “Roadrunner” power battery self-production plan was officially launched. Tesla’s first power battery production line started at the Fremont factory in the United States. forming.

At Volkswagen Power Day in 2021, Thomas Schmall, member of the Volkswagen Group Management Board and head of group technology, revealed: “By 2030, we hope to work with partners to build 6 battery factories in Europe to ensure that batteries Supply. ”

On February 19 this year, Tesla announced that the pilot factory in Fremont, California, had produced the 1 millionth 4680 battery in January this year, marking the official entry of 4680 batteries into mass production. production stage. Foxconn plans to build a complete electric vehicle ecological chain in Taiwan 2

According to foreign media reports, on March 3, Foxconn said that it will produce battery packs and batteries for the first time in its new factory in southern Taiwan, China, to meet the demand for electric vehicles. The automotive industry is gaining more control over the supply of key materials.

Foxconn also stated that it plans to establish a battery pack, battery and energy storage system factory in Kaohsiung, where it will design and assemble electric public vehicles. "Our goal is to build a complete ecosystem for electric buses in the city, and then we can sell electrification solutions to other regions," Foxconn Chairman Liu Yangwei said at a press conference.

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At a time when the United States, Europe and Japan are rushing to strengthen the resilience of the chip industry chain and supply chain, Foxconn has decided to build a battery and energy storage system factory in Taiwan, China, to create a complete ecosystem locally. . The White House's supply chain assessment report pointed out that batteries are one of the most critical components of electric vehicles, and it is of great significance to strengthen control of battery supply.

(Photo source: Foxconn)

Rising iPhone assembler Luxshare Precision (002475) (Luxshare) also recently announced plans to cooperate with automaker Chery Group to design and manufacture cars for other companies, a strategy similar to Foxconn. Liu Yangwei said he was not worried about rival Luxshare Precision's recent move into the electric vehicle industry

"I'm not surprised that we will have more competitors in China, but it's a good sign. , which means people are optimistic about the electric vehicle business," Liu Yangwei said. "However, as time goes by, you will see a wave of consolidation in the electric vehicle industry, and only competitive companies can survive. "He also added, "I estimate that by 2025, you will see who wins and who is eliminated. ”

(Picture source: Luxshare Precision)

Liu Yangwei also said that Foxconn will start to provide information to Kaohsiung City, Taiwan, China, on March 3. The auto operator delivered Model T electric buses and plans to deliver 30 Model T vehicles by the end of this year, which is Foxconn's first delivery since identifying electric vehicles as an important growth driver in 2019.

Liu Yangwei also said that Foxconn is cooperating with the US start-up Lordstown Motors to produce electric pickup trucks. He said in January that the pickup trucks produced in cooperation with Lordstown will begin to be delivered in the second half of this year.

Foxconn is known for its vertical integration. Known for its capabilities in various components, it not only ensures supply but also improves its bargaining power in the supply chain. Foxconn previously announced plans to build its first chip manufacturing plant in India in partnership with Indian natural resources group Vedanta last summer. , Foxconn also acquired a chip factory in the northern city of Hsinchu, Taiwan, and established a chip packaging and testing service center in Qingdao, China, to expand its chip production capabilities.

In January this year, Foxconn also signed an understanding with the Indonesian Ministry of Investment, Indonesian battery supplier Industri Baterai Indonesia, energy supplier Indika Energy and electric motorcycle manufacturer Gorogo MoU to create a new energy ecosystem covering energy storage systems, battery swapping stations, two-wheeled and four-wheeled electric vehicle markets

Foxconn has been accelerating investment to expand its presence in the booming electric vehicle market. Industry influence. Liu Yangwei promised that by 2025, Foxconn’s designs and components will account for 5% of the global electric vehicle market, and at the same time achieve electric vehicle business revenue of NT$1 trillion (35.6 billion) by 2026. USD). Foxconn plans to build a complete electric vehicle ecological chain in Taiwan 3

According to reports, as part of its plan to enter the electric vehicle market, Foxconn plans to build battery packs, batteries and Energy storage system factory.

Foxconn’s move aims to create a complete ecosystem to have more control over the supply of strategic materials related to electric vehicles. Foxconn has been setting its sights on electric vehicles. Foxconn has taken active actions and signed a series of agreements to ensure a place in the fast-growing electric vehicle market

Yesterday, Foxconn Chairman Liu Yangwei said at a press conference. , the company will produce battery packs and batteries for the first time in its new Kaohsiung factory in southern Taiwan. In addition, there are reports that in addition to building battery packs, batteries and energy storage system factories, Foxconn will also design and assemble electric buses at the Kaohsiung factory. .

Since Liu Yangwei took over as chairman from Terry Gou in 2019, Foxconn has been stepping up efforts to expand its influence in the booming electric vehicle industry.

In the past nearly two years, Foxconn has announced a number of electric vehicle-related deals, reaching electric vehicle production agreements with automakers including Fisker, Byton, Geely Group, and Fiat Chrysler.

In October last year, Foxconn released the first three electric vehicles, namely Model C electric sedan, Model E electric SUV and Model T electric bus. Among them, Model C will enter the market in 2023, Model E will be launched later, and Model T for mass transportation will be on the road as early as 2022.

Liu Yangwei said that by 2025, Foxconn’s designs and components will account for 5% of the global electric vehicle market. Foxconn's electric vehicle business goal is to achieve annual revenue of US$35 billion within five years, that is, by 2026, annual revenue from electric vehicle-related businesses will reach NT$1 trillion. Liu Yangwei said: "This is a goal that must be achieved."