Foxconn breaks ground on first electric vehicle battery factory

According to foreign media reports, Foxconn's first battery factory broke ground on June 15 to enter the boomingelectric vehicleindustry.

"We plan to build a localized battery supply chain ecosystem in Kaohsiung, including materials, cells and battery packs," said Liu Yangwei, chairman of Foxconn, at the groundbreaking ceremony in the southern city of Kaohsiung, Taiwan. Kaohsiung will become the center of Foxconn's global electric vehicle layout. important base."

Foxconn plans to start trial production of lithium iron phosphate batteries at its Kaohsiung battery plant in the first quarter of 2024, with a plannedproduction capacity of1.27 GWh.The batteries will first be used in electric buses, electric passenger cars and energy storage systems in Taiwan.Foxconn's battery-related investments in the city, including a research and development center, will reach NT$6 billion ($202 million).

The new factory is part of Foxconn's plans to build an electric vehicle ecosystem in Kaohsiung.The company is also building an electric bus assembly and energy storage system factory in Kaohsiung.Foxconn aims to use its production experience in Kaohsiung to build similar production bases overseas.

Liu Yangwei pointed out that once Kaohsiung's ecosystem is up and running, Indonesia will likely be home to Foxconn's first overseas battery factory.Foxconn has partnered with electric motorcycle company Gogoro, the Indonesian government and local businesses to jointly develop electric vehicles and battery swapping technology.

Image source: Foxconn

Building battery production capacity will be a key test as Foxconn tries to cement its position in the electric vehicle industry.Industry watchers point out that Foxconn is a new player in mass-produced batteries, lacking a broad customer base and deep cooperation with global automakers.

Amid a global shortage of chips and components, Foxconn hopes to secure the source of key electric vehicle components by developing and producing batteries in-house.Foxconn has also stepped up investments in automotive semiconductors, including the acquisition of a chip factory in Hsinchu, a city in northern Taiwan, and announced plans to build chip factories in India and Malaysia.

Although Taiwan does not currently have a scalable battery industry group, it has been increasing efforts to build a battery supply chain.In addition to Foxconn, Taiwan Cement is building its first battery factory in Kaohsiung; Formosa Plastics Group has also set up a company to speed up the development of its batteries and energy storage systems.