The federal government wants a shiny new battery supply chain for electric vehicles (EVs). Capitalizing on Foxconn’s move away from China might be one way to nab it.
What happened: The feds are trying to sell the Taiwanese electronics giant on building some of its EV supply chains in Canada, per The Logic. Foxconn has not confirmed any specific investments, but officials think it’s committed to expanding its presence here.
- Foxconn is perhaps best known for its contracts to make iPhones, but the company also dabbles in software, launching brands, and different growth sectors, like cars.
- Foxconn already employs hundreds of people in Canada across other businesses, has acquired Canadian companies, and its EV execs have at least visited Canada.
Yes, but: Foxconn has backtracked on lavish investment plans before. There is a chance Canada has mistaken a flirty glance across the bar for a desire for long-term commitment.
Why it matters: Whether or not things are that serious, the feds are desperate to establish a domestic supply chain for batteries. In the budget, Ottawa pledged billions to automakers and component manufacturers committed to constructing or expanding plants here.
Bottom line: As Foxconn makes supply chain adjustments to expand outside China, it may take some hefty incentives and subsidies coming out of Ottawa to sway the decision.—SB