Taiwan’s Hon Hai Precision Industry Co, Ltd HNHPF, also known as Foxconn, has entered into a strategic partnership with Chinese electric vehicle startup Byton, the latter announced Monday.
What Happened: Foxconn, a supplier to Apple Inc AAPL, signed the cooperation framework agreement Monday and will work with Byton to hasten the production of the Chinese company’s first model, the M-Byte, by the first quarter of 2022.
Foxconn Technology Group Chairman Young Liu said the agreement was a “demonstration of our commitment in the transformation of the traditional automotive industry.”
“The partnership with Foxconn will bring us the expertise of precision manufacturing and profound resources, enabling us to deliver the promise of next-generation smart mobility experience,” said Byton Co-CEO Ding Qingfen.
Why It Matters: Foxconn is also said to be exploring collaboration opportunities with other Chinese EV makers. Bloomberg had earlier reported on Foxconn's plan to invest about $200 million in Byton.
See Also: Fiat Chrysler In Talks With Apple Supplier Foxconn To Make EVs In China
The Taipei-based company has plans to supply components and services for at least 10% of the world’s electric vehicles, according to Foxconn chairman Liu Young-way.
Price Action: Hon Hai OTC shares closed 9.19% higher at $7.24 on Monday.
Related Link: Apple Aims To Produce Electric Vehicle In 2024: Report
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