The Foxconn Technology Group is in talks with Saudi Arabia for a potential joint venture company focused on building electric vehicles. The information is not official yet, but a new report from Automotive News cites “people familiar with the matter” who told the publication Saudi Arabia's Public Investment Fund will establish a new company named Velocity, which should be the majority stakeholder of the new joint venture.

The investment fund currently manages about $450 billion of assets and wants to get involved in the electric vehicle business in order to diversify the economy of the oil-rich kingdom. In turn, according to the sources, Foxconn, the company that makes the iPhone, will provide software, electronics, and electrical architecture for the new electric vehicles that will be built in Saudi Arabia. Foxconn will also be a minority stakeholder in the joint venture company.

Even more interestingly, the report claims the new firm aims to use BMW chassis for the EVs and the plan is for the two sides to sign a deal before the end of the year. Of course, nothing of this has been confirmed so far with the report from Automotive News being the only available information on the project.

BMW is expected to provide an older electric architecture to the new joint venture company. This won’t be the first time the automaker will license its platforms for use by another manufacturer, as Vietnamese firm VinFast uses older BMW X5 underpinnings for its President SUV. Also, the new Land Rover Range Rover has BMW’s 4.4-liter twin-turbo V8 as an option.

As a final note, Foxconn recently got involved in the automotive industry with its first three vehicles, the Foxconn Model C, Model E, and Model T, developed in cooperation with Taiwanese automaker Yulon Motor Co Ltd. The tech giant recently acquired a former factory of the Lordstown Motors startup in the United States. 

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