Geely says to make EVs for Faraday Future with Foxconn

FILE PHOTO: A sign of Foxconn is seen at a glass door inside its office building in Taipei, Taiwan November 12, 2020. REUTERS/Ann Wang

China's Zhejiang Geely Holding Group said on Friday it and Foxconn are in talks to provide contract manufacturing services to electric vehicle maker Faraday Future.

Geely said in a statement that it had signed a framework agreement to offer technology and engineering support to Faraday Future, and had become a minority investor in Faraday Future's listing.

Foxconn declined to comment on the manufacturing partnership.

FILE PHOTO: The Geely Automobile Holdings logo is pictured at the Auto China 2016 auto show in Beijing, China April 25, 2016. REUTERS/Kim Kyung-Hoon

Reuters reported on Monday that Faraday Future plans to set up a new base in China and enlist Geely for contract manufacturing services, citing people familiar with the matter.

Faraday Future will go public through a merger with Property Solutions Acquisition Corp in a deal valuing the combined entity at $3.4 billion.

With the global EV business, dominated by the likes of Tesla Inc, growing at an explosive pace, a flurry of EV makers are rushing to tap the red-hot initial public offering (IPO) market.

(Reporting by Yilei Sun and Ben Blanchard; Editing by Robert Birsel)