Mitsubishi and Foxconn explore electric vehicle partnership

Taiwan contract maker Foxconn is reportedly close to reaching a deal with two Japanese automakers, with unknown sources saying Mitsubishi being one of those companies. The deal could allow automakers to outsource production of electric vehicles to Foxconn.

For several years, Foxconn has tried to reduce its reliance on consumer electronics and expand it into the electric vehicle market, viewing it as an important growth driver. It hopes to occupy 5% of the global electric vehicle market by 2025 and has previously signed deals with Lordstown, Fisker and China’s Byton. While it hasn’t achieved its desired growth yet, the deal with Mitsubishi could be a major breakthrough for the company.

Read: Foxconn prepares to build four new electric vehicles, including two from Japanese brands

According to Nikkei Asia, Foxconn has been dealing with Mitsubishi for more than six months and believes that the partnership will allow it to demonstrate its manufacturing capabilities in hopes of attracting other established automakers.

It is not yet known that Mitsubishi’s electric vehicles can take on the task of building. The Japanese brand plans to launch a new electric car in the U.S. next year, and although it confirms some details about the model, it is expected to be a crossover coupe.

Foxconn expressed interest in acquiring Nissan late last year, but Nissan will eventually continue to discuss with Honda about a potential merger. However, talks arrived in early February. The Taiwanese company is said to be willing to hold a stake in Nissan and may try to ensure a deal is reached to build the brand’s future electric vehicles.

At this point, Foxconn seems to play an increasingly important role in the electric vehicle market, so there are a lot on Foxconn’s plate. In addition to working with established brands, it will begin producing its in-house Model B, an all-electric hatchback similar to the Volkswagen ID.3. It also hopes to start building a larger C-type C in North America in the fourth quarter of this year.