Shares of Taiwan's Foxconn rose as much as 3.6% on Monday after Vietnam conglomerate Vingroup said its car unit was in early stage talks with Foxconn about working together on developing batteries and electric car parts.
Foxconn had proposed acquiring EV production lines owned by the unit VinFast, Reuters reported earlier.
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Vingroup had said on Friday its car unit was in early stage talks with Foxconn about working together and that any partnership formed would focus on developing batteries and electric car parts.
Foxconn had proposed acquiring EV production lines owned by VinFast, two sources told Reuters.
But Vinfast preferred a partnership as it was keen to brand itself as an eco-friendly automaker and wants to retain its EV business, one source said.
Reuters noted Foxconn had outlined plans to become a major provider of parts and services in the global EV market and any agreement with VinFast would follow deals with Fiat Chrysler and EV startups.
It has an agreement with Zhejiang Geely Holding Group to provide contract manufacturing for other automakers.
It has also said it will work with US startup Fisker to produce more than 250,000 vehicles a year beginning in late 2023 and will start building SUVs for Byton next year, Reuters added.
