Foxconn Sells Lordstown Factory for $375 Million to Fund Data Centers and EVs

Foxconn, the Taiwanese tech giant known for assembling Apple’s iPhones, announced the sale of its Lordstown, Ohio car factory for $375 million to Crescent Dune LLC, an existing business partner. The deal includes land, buildings, and equipment at the former General Motors plant, which Foxconn acquired in 2022 from bankrupt electric vehicle startup Lordstown Motors for $230 million. Despite the sale, Foxconn plans to continue occupying the facility, reinvesting proceeds into U.S. operations to bolster its electric vehicle production and support for data center technologies. The transaction marks a strategic pivot for Foxconn as it navigates the volatile EV market while maintaining a foothold in Ohio’s industrial landscape.

A Strategic Sale Amid EV Ambitions

Foxconn’s acquisition of the Lordstown plant in 2022 was a bold step in its quest to become a major player in the electric vehicle industry. The 6.2-million-square-foot facility, one of the highest-volume single-line vehicle assembly plants globally, was intended to produce Lordstown Motors’ Endurance electric pickup truck and vehicles for other partners, such as Fisker’s PEAR compact car. Foxconn invested heavily, purchasing the plant for $230 million and injecting $52.7 million in equity into Lordstown Motors, securing an 8.4% stake. The Taiwanese company also pursued a $170 million investment deal to hold nearly 20% of Lordstown, aiming to leverage its Mobility in Harmony (MIH) EV platform to attract automakers seeking contract manufacturing.

However, the partnership soured. Lordstown Motors filed for bankruptcy in June 2023, accusing Foxconn of failing to honor the $170 million investment and engaging in “bad faith” by delaying funding and collaboration on vehicle development. Foxconn countered that Lordstown breached the agreement when its stock fell below $1, leading to a legal battle that culminated in Lordstown’s restructuring as Nu Ride Inc. in 2024. The startup sold its Endurance assets to founder Steve Burns and focused on suing Foxconn, alleging the Taiwanese firm “destroyed” its business. The Lordstown plant, capable of producing 320,000 vehicles annually, has since shifted to niche production, including tractors for Monarch, a California-based company, and components for technologies.

The $375 million sale to Crescent Dune LLC allows Foxconn to recoup its initial investment while retaining operational control through a lease-back arrangement. Foxconn stated it will reinvest the proceeds into U.S. projects, particularly in data center equipment and AI hardware, aligning with growing demand from clients like Nvidia. The move reflects Foxconn’s adaptability in a challenging EV market, where startups like Lordstown and IndiEV have struggled amid supply chain disruptions and rising costs.

Economic and Industry Implications

The Lordstown sale underscores the turbulent landscape for EV startups and Foxconn’s evolving role in North America. The Ohio plant, once a GM facility, was a symbol of hope for the region after GM’s closure in 2019. Lordstown Motors, launched in 2018, aimed to challenge Detroit’s dominance in high-margin pickup trucks with the Endurance, targeting commercial fleets. However, production struggles and financial woes led to just 80 trucks built before bankruptcy. Foxconn’s acquisition initially promised jobs and economic revival, with plans to employ many of Lordstown’s workers and pursue a U.S. Energy Department loan for retooling. Yet, the facility’s underutilization—Lordstown used only 20% of its capacity—highlighted the challenges of scaling EV production.

The sale to Crescent Dune LLC, described as a business partner, raises questions about future operations. Foxconn’s continued occupancy suggests confidence in the plant’s potential, possibly for producing EV components or supporting partners like Fisker, though Fisker has distanced itself from Foxconn amid its own financial struggles. The facility could attract overseas automakers seeking a U.S. manufacturing base, especially under Biden administration policies incentivizing domestic EV production. However, Foxconn’s shift toward data center and AI products signals a diversification strategy, reducing reliance on the volatile EV market, projected to reach $144 billion in outsourcing by 2030.The deal also reflects Foxconn’s cautious approach after setbacks. Its Wisconsin project, initially a $10 billion LCD factory, was scaled back to $672 million, and its EV ambitions have faced scrutiny following Lordstown’s collapse. The sale allows Foxconn to maintain a U.S. presence without the full burden of ownership, while the $375 million price tag—$145 million above its 2022 purchase—suggests a profitable exit from a troubled asset. Still, the legal dispute with Nu Ride Inc. and federal investigations into Lordstown’s investor claims could complicate Foxconn’s plans, requiring careful navigation of regulatory and public scrutiny.

Foxconn’s Lordstown move is a pragmatic step in a high-stakes industry. By selling the plant while staying on as a tenant, Foxconn balances its EV ambitions with emerging opportunities in AI and data centers, ensuring Ohio remains a hub for its U.S. operations. As the automotive industry evolves, Foxconn’s next steps will shape its role in America’s tech and manufacturing future.