GUANGZHOU, China — Apple iPhone maker Foxconn has signed a cope with Chinese language electrical carmaker Byton to assist produce its first automobile.

The transfer marks an enormous push by Foxconn into auto manufacturing because it tries to diversify its enterprise past simply assembling client electrical merchandise.

Foxconn, which trades Hon Hai Precision Industry Co. in Taiwan, noticed its shares soar over 4% on Tuesday after they closed over 8% greater on Monday.

Byton, Foxconn and Nanjing Improvement Zone signed a strategic cooperation framework settlement on Monday to collectively produce Byton’s M-Byte SUV by the primary quarter of 2022.

Foxconn will present its experience in superior manufacturing know-how, operational administration expertise and can share industrial sources, in accordance with a press release from the businesses.

The settlement may present a lifeline for Byton which first revealed the M-Byte in 2018 however has since struggled to ramp up manufacturing. The Nanjing, China-based firm needed to droop manufacturing in July and endure a reorganization after the coronavirus pandemic damage the enterprise.

For Foxconn, the deal is a technique to diversify its enterprise. Final 12 months, Foxconn launched a set of instruments that may enable an organization to design massive elements of an electrical automobile that may be manufactured by the Taiwanese agency. These instruments embrace a chassis in addition to software program for the automobile.

Foxconn has already been supplying automakers together with Tesla with particular elements.

China’s electrical automobile market continues to indicate robust development. Electrical automobile start-ups Nio, Li Auto and Xpeng every introduced in the previous few days that deliveries surged in 2020 to close out the year with new monthly highs.