Nidec agreed with Foxtron Vehicle Technologies, in which the former will supply electric powertrains, according to Bloomberg. The collection of components for the electric vehicle initiative includes motor, gears, and drive shaft.
Foxtron expects the initial results of collaboration with Nidec to show in the fourth quarter even as it works on passenger and commercial vehicles.
Foxtron was established last year as a venture between Taiwan’s Yulon Group and Foxconn, the world’s largest assembler of iPhones.
Foxconn is seen as a top contender for the Apple car business and has been building up its own automotive capabilities.
In October, Foxconn unveiled an open and customizable EV software and hardware platform called MIH.
Nidec is shifting its business of making motors to supply EV manufacturers with small precision motors for hard-disk drives, consumer appliances, and industrial machines.
Nidec aims to become a supplier of 85% of the world’s hard-disk drives, high quality, precise, and affordable motors that can be used to make the top supply of EV Motors.
The company has pledged to spend almost $10 billion over the next five years to grow the market share to 40%-45%.
Nidec and Foxconn stocks are currently gaining. 6594: TYO is up 2.60%, 2354: TPE is up 1.91%.
