Workers install door hinges to the body shell of a prototype Endurance electric pickup truck on June 21, 2021 at Lordstown Motors’ assembly plant in Ohio.

Michael Wayland / CNBC

Embattled electric vehicle start-up Lordstown Motors said Wednesday it has closed a $ 230 million deal to sell its Ohio factory to Taiwanese contract manufacturer Hon Hai Technology Group, better known as Foxconn.

Lordstown’s shares surged more than 35% in after-hours trading following the news.

The deal to sell the plant, a former General Motors factory, has been seen as a critical lifeline for Lordstown, which has run through nearly all of the cash it raised in a merger with the special-purpose acquisition company (SPAC) that took it. public in October 2020.

The parties had set a May 18 deadline to complete the deal. Had it not closed before then, Lordstown would have been out of cash and, likely, out of options to complete development of its Endurance electric pickup.

Foxconn plans to use the factory to build EVs for clients under contract, including the Endurance and a new low-cost model for California start-up Fisker that’s expected in 2024.

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