TAIPEI (Taiwan News) — Taiwanese electronics manufacturer Foxconn is aiming to manufacture 150,000 electric vehicles (EV) in Thailand by 2030 through a joint venture that began on Monday (Feb. 7).

Foxconn signed a deal with Thailand’s state-owned oil supplier PTT Public Co. in September 2021 to set up the joint venture — Horizon Plus Co., Ltd — according to CNA. Foxconn’s wholly owned subsidiary Lin Yin holds a 40% stake in Horizon Plus, while PTT’s wholly owned subsidiary Arun Plus holds a 60% stake.

Horizon Plus is expected to begin construction on an EV manufacturing plant sometime this year, and production is slated to start in the first quarter of 2024. The initial annual capacity of the plant will be 50,000 vehicles, with the goal of ramping up production to 150,000 EVs a year by 2030.

Foxconn and PTT are expected to invest around US$1 billion (NT$27.83 billion) into Horizon Plus in the company’s initial phase, according to CNA. Foxconn said last year that the new plant might be built in the Eastern Economic Corridor in eastern Thailand.

Horizon Plus demonstrates that Thailand can serve as a regional production and design hub for both EVs and internal combustion engine vehicles, said Buranin Rattanasombat, chairman of Horizon Plus and senior VP of PTT’s innovation business division. Rattanasombat added that the partnership will utilize Foxconn’s advanced manufacturing capabilities to speed up development time and reduce production costs, per CNA.