Electric vehicle (EV) startup Fisker has announced it has entered into an agreement with Magna International to build its upcoming electric SUV.
Earlier this summer Fisker also announced it was going public through a reverse merger, which would value it at $2.9 billion. As part of the deal with the Ontario based auto supplier, Magna will receive warrants to purchase up to 6% of the automaker.
“We’re full speed ahead,” Fisker Chief Executive Henrik Fisker told Reuters. “This is a huge turning point. We realized Magna would be an amazing partner because having skin in the game obviously means we both have the same goal of getting this car to market.”
As part of the deal, Magna will be required to hit certain engineering and production milestones until production begins, which is slated for November 2022.
This will be Magna’s first foray into contract manufacturing for an EV company. Henrik Fisker also revealed the Ocean will be built at a facility in Europe.
The deal comes after news that a deal between Fisker and VW had failed to materialize by the end of July. Talks were set to resume again in September, but it appears those were not successful. Fisker did say the German automaker may still provide unspecified body or interior parts for the electric SUV.