Taiwanese contract manufacturer and major Apple Inc. AAPL supplier Hon Hai Precision Industry Co., Ltd. HNHPF is making rapid moves in furthering its electric vehicle ambitions.
What Happened: Hon Hai, popularly known as Foxconn, and Vietnamese conglomerate Vingroup unit VinFast are engaged in exploratory talks regarding forging a partnership to develop batteries and EV parts, Reuters reported, citing sources familiar with the matter.
While Foxconn is looking to acquire EV production lines owned by VinFast, the latter is keen on striking a partnership, the report said.
VinFast, which has the distinction of being the first fully domestic car manufacturer in Vietnam, reportedly received proposals from Foxconn, although nothing is concrete yet. VinFast also makes electric motorbikes and buses.
Why It's Important: Foxconn has made several moves in recent times to dip its heel into the lucrative EV market. Most recently, the company said it is contemplating setting up EV manufacturing facility either in Wisconsin, where it already has a plant, or in Mexico.
The company has stitched up several partnerships, including Stellantis N.V. STLA, China's Byton and Fisker Inc. FSR to manufacture EVs. It also has a relationship with Chinese automaker Geely Automobile Holdings Limited GELYF to provide production and consulting services to global automotive enterprises.
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