Foxconn, fast becoming an EV maker in its own right, has agreed to make additional investments in Lordstown Motors starting with US$70 million of LMC’s Class A common stock and up to $100m of a newly created Series A convertible preferred stock.

Upon completion, Foxconn is expected to hold all of LMC’s outstanding preferred stock and 18.3% of its common stock and will have the right to designate two LMC board members.

Lordstown, in the process of putting its electric pickup truck into production in a former General Motors Ohio factory, said it would use proceeds from the common stock sales for general corporate purposes and preferred stock proceeds to fund development and design for a new electric vehicle programme in collaboration with Foxconn.

The $100m investment replaces joint venture funding previously announced by Foxconn and LMC.

LMC executive chairman Daniel Ninivaggi said: “Since announcing our first transaction with Foxconn more than a year ago, it has been our objective to develop a broad strategic partnership that leverages the capabilities of both companies. Foxconn’s latest investment is another step in that direction. Our board and management strongly believe that deep collaboration with the Foxconn EV ecosystem, including the Mobility-in-Harmony (MIH) open-source platform, offers tremendous opportunities to meet our mutual ambition to accelerate EV adoption globally. I look forward to welcoming Foxconn representatives to our Board and exploring other ways to deepen our partnership.”