Taiwan-based Foxconn has struck a deal to sell its former car factory in Lordstown, Ohio, for $375 million to an “existing business partner.” The sale includes the site’s buildings, land, equipment and machinery, but the company said it would continue to operate the location to make more products that align with its “strategic priorities.”
According to filings, the buyer is an entity called Crescent Dune LLC, which was created in Delaware less than two weeks prior to the announcement. The deal was also split into two separate transactions: The factory and land sold for $88 million, while the machinery and equipment went for $287 million.
Foxconn originally purchased the factory in 2022 from the now-bankrupt Lordstown Motors Corp for $230 million, The site was originally a General Motors factory, and Foxconn planned the purchase as an investment into the electric vehicle sector. The company’s relationship with Lordstown soured after the latter failed in June 2023 and later sued Foxconn.
Foxconn was in talks with multiple manufacturers who wanted to build EVs at the plant, but all fell through. Now, Foxconn is using the site to build electric tractors for California-based start up Monarch.
While representatives declined to comment on the exact products to be manufactured at the plant, it’s worth noting that Foxconn currently makes data center products for tech giant Nvidia and manufactures Apple iPhones.
According to Wall Street Journal, the company plans to use the site as support for AI-powered data centers. If the full 6 million square feet of the location were used, it would be six times larger than the plant Foxconn is building in Houston to manufacture Nvidia's GB300 AI servers.
Despite seeming to pivot away from electric vehicles, Foxconn said it remained committed to U.S. automotive customers in the U.S. and the factory would retain the ability to ramp up automotive production to meet demand when required.
