Foxconn sells $375M Ohio plant, pivots from EVs to AI servers

Foxconn has sold its 3-million-square-foot Ohio manufacturing facility to Crescent Dune LLC for $375 million, while retaining operational control through a long-term occupancy agreement. The strategic move allows Foxconn to pivot the Lordstown plant from troubled electric vehicle production to manufacturing AI servers for major clients including Nvidia and Apple, capitalizing on the more predictable, high-margin AI hardware market.

What you should know: The ownership transfer is essentially a financial restructuring that keeps Foxconn in charge of operations while offloading real estate assets.

• Foxconn will continue operating the facility under a long-term occupancy agreement, maintaining control over production and employment.
• The plant will shift from manufacturing electric vehicles to producing AI servers, aligning with industry trends toward AI hardware assembly.
• The facility currently employs several hundred workers whose jobs are preserved under the new arrangement.

The big picture: This transaction reflects a broader industry pivot from capital-intensive EV projects with uncertain returns to the more profitable AI hardware sector.

• Foxconn’s strategic realignment underscores a broader industry trend of manufacturers shifting from electric-vehicle initiatives, often capital-intensive with uncertain returns, to the more predictable, high-margin business of AI hardware assembly.
• The timing coincides with Nvidia’s recent breakthrough of the $4 trillion market cap mark, highlighting the explosive growth in AI infrastructure demand.

Troubled history: The Lordstown facility has experienced a series of failed automotive ventures over the past five years.

• General Motors operated the plant for vehicle manufacturing until 2019, when Lordstown Motors purchased it.
• Foxconn acquired the facility from Lordstown Motors in 2022, initially planning to manufacture the Fisker Pear before Fisker’s bankruptcy.
• The plant also produced an estimated 200-500 Monarch electric tractors across multiple locations, but faced layoffs and restructuring in late 2024.

Why this matters: The deal demonstrates how geopolitical supply chain considerations are reshaping manufacturing priorities in critical technology sectors.

• Ohio ranks first nationally in reshoring announcements with 37 companies totaling 12,423 jobs, according to the Reshoring Initiative.
• The arrangement maintains U.S.-based production while involving Chinese investment, navigating complex international trade dynamics in the semiconductor supply chain.
• As one 2021 editorial noted: “One of few good points to arise from the global pandemic is that it has spurred a national push to strengthen the domestic supply chain, especially for essential products.”