- Following its recent round of EV deals with US startup Fisker Inc and Thai energy group PTT PCL, the iPhone maker has decided to strike another deal in Southeast Asia.
- A memorandum of understanding has been signed between Foxconn and the Indonesian Ministry of Investment as well as Indonesia Battery Corporation, energy company PT Indika Energy.
- Foxconn aims to build a “new energy ecosystem” in Indonesia that includes battery swapping stations and recycling.
Longtime iPhone assembler Foxconn has been redouble its efforts to expand its presence in the booming electric vehicle industry since its new president took office in mid-2019. The company even aims to turn its fledgling automotive segment into a 1 trillion New Taiwan Dollar ($35.78 billion) business in just five years. The Taiwanese company recently reached an agreement with the Indonesian government to support the country’s electric vehicle segment.
In a statement released last week, Foxconn said it had signed a memorandum of understanding with Indonesia’s Ministry of Investment as well as Indonesia Battery Corporation, energy company PT Indika Energy and Taiwanese electric scooter seller Gogoro. The MoU covers a wide range of investment in electric vehicles, including the battery manufacturing.
the deal with indonesia is not the first for the Taiwanese giant. In fact, as Apple’s main iPhone maker, Foxconn has been expanding into electric vehicles in recent years, announcing a series of deals with the likes of US startup Fisker Inc and Thai energy group PTT PCL. .
Basically, Foxconn aims to build a “new energy ecosystem” in Indonesia, which also includes the development of supporting industries for electric vehicles such as energy storage systems, battery exchange stations and recycling, a the company said in a statement.
It was also noted that under the partnership, an open “MIH platform” that provides both hardware and software services will be available for businesses in Indonesia. Foxconn did not reveal details on the size of the investment or production plans, however.
A separate report from Forbes said the collaboration with Gogoro will advance electrification and an “open grid” in Southeast Asia’s largest market. “A network of battery exchange stations, a specialty of Gogoro, Indonesia could emerge from the deal,” said the report complaints.
Foxconn and its EV dream
The company once said in a statement that founder Terry Gou “always believed that the adoption of electric vehicles would inevitably be a global trend simply because it has become the largest and most popular smart electronic device. dear to the world”.
In addition to this, Chairman Liu Young-way said Foxconn aims to provide components or services to 10% of the world’s electric vehicles by 2025 to 2027. The company is also committed to reducing manufacturing costs. and others for car manufacturing thanks to its know-how in assembly. the world’s largest contract electronics manufacturer.
Last year, the Taiwanese company showcased two electric passenger vehicle models – the Model C sport utility vehicle, the Model E sedan – and a Model T electric bus prototype at its annual Foxconn Technology Day event in Taipei. Its first three electric vehicles will be made through a joint venture between Foxconn and Taiwanese automaker Yulon Motor, known as Foxtron, the company announced at the event.
According to another report through Forbesquoting analysts, he said that “share of the global EV market should easily go to Foxconn now, as the three EV models have been following a series of related joint ventures since 2014. These efforts give the company a expertise that it can combine with its giant factory infrastructure. in Asia.”
Along with deals with US startup Fisker, Chinese automaker Geely, and Thailand’s PTT PCL, there was even a venture with Stellantis that allowed Foxconn to develop automotive cockpit software. Then there was one with Gigasolar Materials, which gave Foxconn the expertise in EV batteries and their components.
“We have completed almost one collaborative project every month over the past year to secure our supply chain capacity and potential markets. [for EVs]“, Liu said at the event. “We are not the newcomer in town anymore.” In 2020 alone, Foxconn’s total revenue was NT$5.35 trillion, and according to Nikkei’s report, it estimates that its electric vehicle business will contribute more than NT$10 billion for the first time in 2021.