Benzinga | Jul 21, 2021 11:03AM EDT

Nidec, Foxconn, Foxtron In Discussions To Establish EV Joint Venture

* Nidec Corp (OTC:NJDCY) agreed to discuss a joint venture (JV) with Hon Hai Technology Group, better known as Foxconn Technology Co Ltd (OTC:FXCOF), and Foxtron Vehicle Technologies Co., Ltd.

* On March 18, 2021, Nidec signed a memorandum of understanding with Foxtron regarding its strategic alliance in developing electric vehicle (EV) drive systems.

* This JV aims to ensure a stable supply of traction motors and other automobile motors for Hon Hai, Foxtron and to expand sales opportunities of new markets and customers for Nidec.

* They plan to set JV's Taiwan headquarters within 2022. The main business of the JV will be on the development, production, and sales of traction motor systems and various motor-related products for automobiles.

* Nidec revealed confidence that the establishment of the JV will be an essential step in building its foundation for traction motor production target of 10 million units in 2030.

* Price action: NJDCY shares are trading higher by 3.28% at $30.25 on the last check Wednesday.