Geely, which owns Volvo Cars and holds 9.7 percent of Daimler, is keen to improve the capacity utilization rate of its plants around China, said people familiar with the matter, who were not authorized to speak to media and declined to be identified.
Its main listed company, Geely Automobile, has the capacity to build more than 2 million vehicles a year but sold only about 1.32 million in 2020. Geely Automobile plans to issue shares on mainland China’s STAR board this year.
Foxconn said in October it aimed to provide components or services to 10 percent of the world’s EVs by 2025-2027.
It is the second deal this week announced by Geely, which said it will work with Chinese search engine giant Baidu to make electric vehicles.