Taiwan’s Hon Hai Precision Industry Company announced it was in talks with Japan’s Nidec Corporation to establish a joint venture to develop, produce and distribute powertrain systems for electric vehicles (EVs).
Hon Hai, widely known as Apple’s main manufacturing outsourcing company Foxconn, has ambitious plans to also become an EV contract manufacturing company and has developed its own modular EV platform to offer clients.
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Hon Hai is also in the process of establishing an effective supply chain for its EVs with around 1,800 Taiwanese companies having already joined its Mobility in Harmony (MIH) supplier association.
Nidec is one of the world’s leading suppliers of electric motors and has invested heavily to become a leading global supplier of EV drive systems.
The joint venture is expected to be based in Taiwan’s capital city Taipei.
Hon Hai will make the investment through its Foxtron Vehicle Technologies Company subsidiary which was established last year to encompass its EV operations.
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By GlobalDataFoxtron claims to be the only company in Taiwan able to design and develop an entire electric vehicle.
Hon Hai had previously signed a preliminary agreement with Nidec to explore opportunities for a strategic partnership, saying at the time “it would provide indispensable momentum in powertrain development for next generation electric vehicles”.
Hon Hai said: “Nidec’s powertrain system is known for its small size, lightness and high efficiency” after evaluating its E-Axle traction motor system.
The Japanese company said it aimed to control 40%-45% of the global electric vehicle powertrain market by 2030.
