Foxconn, the world’s largest contract manufacturer for electronics including Apple products, has finalized plans to acquire a 50% stake in Mitsubishi Electric Mobility for 115 billion yen (approximately $728 million). The agreement establishes a new strategic partnership centered on electric powertrains, vehicle software, and advanced control systems, merging Foxconn’s global manufacturing capabilities with Mitsubishi Electric’s automotive engineering experience. This alliance builds on two prior memorandums of understanding signed in May 2025 to design and build EVs in Foxconn’s Taiwan facilities, and in April of this year, Mitsubishi Electric signed another memorandum of understanding with Foxconn to explore a strategic alliance to jointly operate their respective automotive equipment businesses.
The joint venture will operate under Mitsubishi Electric Mobility’s existing structure, with an estimated total enterprise value of 320 billion yen and an equity valuation of 230 billion yen for its automotive equipment division. The transaction is expected to combine Mitsubishi Electric Mobility’s expertise in electric powertrains, software, and vehicle control systems with Foxconn’s manufacturing speed and scale for market deployment.
This collaboration will initially focus on producing EV platforms developed in Japan, supporting Japan’s domestic automotive sector while eventually expanding internationally. Foxconn’s expansion into automotive manufacturing marks a deliberate pivot from its traditional electronics-focused operations. Over the past five years, the company has actively pursued electric vehicle initiatives, including the launch of the Mobility in Harmony Consortium in 2021, an open alliance aimed at creating standardized EV platforms and autonomous driving systems.
But the company has been looking to expand into other markets as part of its 3+3+3 strategy to diversify its business, including electric vehicles, digital health, robotics, semiconductors, and AI. In November 2021, Foxconn purchased the shuttered General Motors Lordstown, Ohio, factory from EV startup Lordstown Motors as part of a deal valued at approximately $260 million.
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It included the creation of a $100 million joint venture with Lordstown Motors in May 2022 to develop EVs for the global market. However, the deal fell apart after Lordstown Motors filed for bankruptcy protection and sued Foxconn for failing to invest the agreed $170 million to prepare the facility for production. In January 2024, Foxconn established a new electric vehicle company in Zhengzhou, China named Foxconn New Energy Automobile Industry Development.
The plans for the new company included electric motor production, vehicle development and component manufacturing, as well as sales. In June 2025, Foxconn also signed a joint development agreement with automotive software developer Elektrobit to build an AI-powered platform for software-defined, electric vehicles. Through this alliance, Foxconn gains Mitsubishi Electric’s technical leadership in powertrain development and vehicle control systems, while Mitsubishi Electric benefits from Foxconn’s rapid production scaling.
The transaction is scheduled for completion on October 1, 2027, subject to regulatory approvals. The collaboration supports Japan’s broader strategy to strengthen its domestic automotive sector while contributing to global electric vehicle adoption. Mitsubishi Electric Mobility’s emphasis on electric platforms and software integration aligns with the rising demand for high-tech mobility solutions in both domestic and international markets.