Apple iPhone maker Foxconn could be about to build battery-electric vehicles for the Japanese automaker Mitsubishi.

The pair have signed a memorandum of understanding (MoU) that their joint venture will design and build cars in Foxconn’s Taiwan facilities, the BBC reports.

A new BEV Mitsubishi model is expected to be available by the end of 2026 under the contract, which would be Foxconn’s first major production deal in the sector it has been courting for some time.

It has previously said it would consider taking a stake in Nissan for vehicle production cooperation, as it has ambitions to diversify its business.

Foxtron, the company's BEV joint venture with automaker Yulon Motor, counts Yulon-owned Luxgen as its main client in Taiwan.

The companies say in a statement that the cars will be built by Foxtron and “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,” the statement adds.

Japanese car makers like Mitsubishi have faced growing competition from mainland Chinese rivals, particularly in markets in Southeast Asia, South America and Europe.

At this stage, the MoU is a non-binding deal between the two companies who say they “will proceed with discussions towards a definitive agreement.”