Hon Hai to unveil EV battery samples this year
Taipei, March 23 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co., which has entered the electric vehicle (EV) sector to strengthen its bottom line, is planning to unveil battery samples later this year as part of its ongoing effort to develop EVs.
Hon Hai Chairman Liu Young-way (劉揚偉) said at a recent news conference for foreign correspondents that the company has invested in developing two kinds of EV batteries: solid state batteries and lithium iron phosphate (LPF) batteries.
Hon Hai expects to develop a sample solid state battery this year and to start commercial production in 2024, he added.
Liu did not disclose the progress made on LPF batteries at the press conference, focusing instead on the importance of battery development for EV production.
According to Hon Hai, also known as Foxconn on the global market, batteries and related power system devices account for more than one third of electric car development costs.
In recent years, Hon Hai has promoted the "3 plus 3" initiative to expand from its contract manufacturing business into hardware and software integration. The development of electric cars is central to that initiative as is building an electric car supply chain.
The "3 plus 3" initiative refers to three emerging industries -- electric cars, robots and digital healthcare -- that are being developed through the application of artificial intelligence, semiconductor and communication technologies.
Electric cars are at the top of Hon Hai's business agenda in 2021 and the company remains focused on taking a 10 percent share of the global electric car market, Liu has said.
Meanwhile, Hon Hai Chief Executive Officer Jack Cheng (鄭顯聰) said the company will disclose in June more details on the independent operation of the MIH Open Platform currently promoted by the company for EV development.
The platform was initiated by Yulon Group subsidiary Hua-Chuang Automobile Information Technical Center Co., and Hon Hai formed a joint venture with Hua-Chang in February 2020 called Foxtron Vehicle Technologies Co., to strengthen the platform, which provides solutions to other automakers.
Hon Hai has said it plans to build the platform into the "Android of the electric car industry."
At the press event, Liu said the company aims to boost the stock price to earnings (PE) ratio of Hon Hai shares by developing new technologies to benefit its employees. The PE is the ratio of a company's share price to its earnings and is a commonly used method to determine the value of a company.
According to Liu, Hon Hai's PE is currently about 16.
One market estimate expects Hon Hai to take a 3 percent share of the global electric car market in 2022, when about 5.2 million units will be shipped.
Another foreign brokerage expects Hon Hai to roll out 1.10 million electric cars a year in 2025 which will account for about 10 percent of the global market. The brokerage added that EV operations are expected to help Hon Hai rake in US$35 billion in revenue, or 15 percent of total revenue in 2025.
In addition, electric cars are expected to make up 30 percent of Hon Hai's total earnings in 2025, the brokerage said.
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