Apple’s iPhone manufacturer Foxconn has revealed intentions to build electric vehicles (EVs) for Mitsubishi Motors, a major Japanese automaker.

A Foxconn joint venture will design and manufacture vehicles for Mitsubishi in Taiwan under the terms of the agreement.

According to the firms, the new model should be available by the end of the next year. This would be Foxconn’s first significant deal in the fiercely competitive and rapidly expanding EV market.

Mainland Chinese competitors have become a bigger threat to Japanese automakers like Mitsubishi, especially in South East Asian, South American, and European markets.

According to the firms, Foxtron, Foxconn’s electric vehicle joint venture with Taiwanese automaker Yulon Motor, will construct the vehicles.

“Foxtron will provide design and manufacturing management services and this model is expected to enter the Australia and New Zealand markets in the second half of 2026,” they stated.

The arrangement is currently a non-binding contract between the two businesses, known as a memorandum of understanding. According to their statements, the businesses “will proceed with discussions towards a definitive agreement.”

The largest contract electronics manufacturer in the world, Foxconn has clients that include well-known tech firms like Apple.

It had earlier stated that it would look into purchasing a share in Nissan Motor of Japan for “co-operation” as it sought to enter the auto sector.

Nissan and French automaker Renault have formed an agreement in which Mitsubishi Motors is a junior member.

The actions take place while the world’s second-largest economy has become a leader in the expanding EV market and China’s automobile industry has grown quickly in recent years.

As big Chinese companies like BYD continue to attract new clients, established automakers worldwide have found it difficult to compete.