Taiwan’s Hon Hai Precision Industry Company is joining forces with Singapore-based SES Holdings to develop batteries for electric vehicles (EV), according to local reports.
SES, formerly known as SolidState before its merger with New York-listed Ivanhoe Capital Acquisition earlier this week, was described as the leading global supplier of hybrid lithium-metal rechargeable batteries which it said combine high-energy density with efficient scalable manufacturing.
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The deal valued the enlarged company at US$3.6bn and is expected to provide it with US$471m to fund expansion.
Several automakers, including General Motors, Hyundai Motor, Kia Corporation, Geely Auto, SAIC Motor and Hon Hai itself have agreed to be private investors in the publicly listed company (PIPEs) after the merger with Ivanhoe Capital.
Hon Hai, also known as Apple’s main manufacturing contractor Foxconn, has ambitious plans to become an EV contract-manufacturing company and has developed its own modular platform to offer potential customers. It is currently establishing an effective supply chain for the project.
Hon Hai is eyeing introducing SES’ hybrid lithium-metal batteries in addition to other battery technology such as lithium iron phosphate to improve the performance of its EVs.
Hon Hai aims to develop a prototype solid-state battery with SES this year and start commercial production next year.
