Lordstown Motors strikes $230 million deal to sell its Ohio plant to Foxconn, pumping in the cash needed days before the deadline

Workers install door hinges on the body of a prototype Endurance electric pickup truck on June 21, 2021 at the Lordstown Motors assembly plant in Ohio.

Michael Wayland/CNBC

Embattled electric vehicle start-up Lordstown Motors announced on Wednesday that it has reached a $230 million deal to sell its Ohio factory to Taiwanese subcontractor Hon Hai Technology Group, better known as Foxconn.

Lordstown shares jumped more than 35% in after-hours trading following the news.

The deal to sell the plant, a former General Motors plant, was seen as a key lifeline for Lordstown, which has used up nearly all the money it raised in a merger with the Special Purpose Acquisition Company (SPAC) that took it. public in October 2020.

The parties had set a deadline of May 18 to conclude the agreement. If it hadn’t been shut down earlier, Lordstown would have been strapped for cash and, presumably, run out of options to complete development of its Endurance electric pickup.

Foxconn plans to use the plant to build electric vehicles for contract customers, including the Endurance and a new low-cost model for California start-up Fisker that is expected in 2024.

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