Shares of electrical automobile start-up Fisker surged greater than 20% in morning buying and selling Wednesday after the corporate introduced a producing take care of Foxconn Technology Group.

The 2 corporations have signed a memorandum of understanding for the Taiwan-based electronics contract producer, greatest recognized for assembling Apple iPhones, to supply greater than 250,000 electrical automobiles a 12 months for Fisker, in line with a joint announcement Wednesday from the businesses.

Fisker, which went public through a reverse merger last year, has a market cap of $5.26 billion.

Meeting of the automobile is predicted to start out within the fourth quarter of 2023, in line with the businesses. Officers supplied few different particulars in regards to the deliberate EV aside from it is going to be for a “new section automobile.”

“We are going to create a automobile that crosses social borders, whereas providing a mixture of superior know-how, fascinating design, innovation and worth for cash, while delivering on our dedication to create the world’s most sustainable automobiles,” Fisker CEO Henrik Fisker stated in an announcement.

The businesses stated the deal – codenamed “Mission PEAR” (Private Electrical Automotive Revolution) – is predicted to shut within the second quarter of this 12 months. It might be Fisker’s second main deal in current months. The corporate already has a take care of auto provider Magna to supply the Fisker Ocean, its first anticipated automobile.

Magna and Fisker count on to start out manufacturing on the Ocean within the fourth quarter of 2022. The Ocean will initially be manufactured solely by Magna in Europe.