Lordstown Motors, a developer of light-duty battery-electric pickup trucks for commercial fleets, has received an additional equity investment of USD 170 million from Taiwanese manufacturer Foxconn which consists of USD 70 million Class A common stock (for 18.3% ownership) and up to USD 100 million of a newly created Series A convertible preferred stock (100% ownership). Foxconn will also have the right to two board seats.

The company intends to utilize the funds to develop and design a new electric vehicle in collaboration with Foxconn and to support its corporate expenses.

The investment in preferred stock replaces the joint venture (JV) funding announced last year by the two companies. The investment will come in tranches and is subject to review by the US committee of foreign investment.

Analyst QuickTake: Lordstown Motors closed its contract manufacturing agreement with Foxconn last quarter , following the sale of Lordstown Motors’ only facility in Ohio to the latter in May. The company began production of its electric truck in September, however, noted that it needed additional capital to materialize its production and delivery goals.