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Far from the original promise of building and developing large LCD screens, the Foxconn Technology Group plans to make batteries for electric vehicles and energy storage systems at in Mount Pleasant, according to comments by the company’s top executive on a recent investor call.
Talking to investors last Wednesday, Young Liu, chairman of Foxconn was asked about developing auto components in Ohio and Wisconsin.
“We will develop new energy industry in Wisconsin, including battery cell, battery pack,” Liu said according to a transcript of the call. “Because Ohio is an assembly plant, there will be battery pack as well. Ohio will mainly be EV battery pack, while Wisconsin will mainly have new energy, ESS and battery cell.”
More:Foxconn to join We Energies on solar farm in Mount Pleasant
Nikkei Asia was first to report on the comments.
Encouraged by provisions in Inflation Reduction Act
Liu said the Inflation Reduction Act legislation is “very beneficial” to Foxconn.
“We developed in the United States is not because of IRA, but due to the trend of regionalized manufacturing. After we deployed into the United States and Mexico, here comes IRA,” Liu said on the call.
“To us, the timing is pretty good. Aside from developing EV assembly locally, we will have battery cell, battery pack and EEA structure. These are all our development direction. We see these development direction as very helpful for local industry. The US government is also very supportive.”
Partnership with Lordstown Motors
In September 2021, Foxconn announced it was purchasing the Lordstown Motors plant in Lordstown, Ohio for $230 million.
Foxconn has invested $170 million in Lordstown Motors as of the end of 2022. Of that, $52 million invested by Foxconn in the auto company last November, according to Lordstown Motors fourth quarter report.
In 2021, the Wisconsin Economic Development Corp. was talking with Fisker Inc., a California car maker which had a partnership with Foxconn, about possibly developing a product in Mount Pleasant. However no deal was ever signed.
Previous Foxconn deals and performance
Foxconn has been quiet on deals with other companies for work in Mount Pleasant after several high profile agreements eventually fell apart.
The company has been criticized for scaling back its initial promise to bring 13,000 jobs and invest $10 billion in the huge Racine County campus that it assembled with state and local financial help.
Foxconn says it has invested more than $1 billion in the Racine County site.
Foxconn says it has has used the site for server and motherboard production, although customers have not been publicly identified. The company has been rumored to be assembling servers for Google.
Foxconn currently employs more than 1,000 people in Wisconsin and has received nearly $30 million in tax credits from the state in the last two years for meeting hiring and capital expenditure goals.
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