Chinese iPhone-maker Foxconn has signed a memorandum of understanding to build a new electric vehicle for Fisker Inc, the Los Angeles based EV startup of celebrated Danish automotive designer and entrepreneur Henrik Fisker.

Foxconn, the world’s largest electronics manufacturer, will build Fisker second vehicle, which is planned for release in late 2023. Fisker’s first EV model, Ocean (pictured) is manufactured by Canadian auto supplier Magna and is on track to be launched next year.

The deal continues Fisker’s stated strategy of outsourcing production to contract manufacturers.

The collaboration is targeting an annual production of 250,000 electric vehicles that will be sold in North America, Europe, China and India, according to Fisker.

“The collaboration means that it will only take 24 months to produce the next Fisker vehicle – from research and development to production, reducing half of the traditional time required to bring a new vehicle to market,” said Foxconn chairman Young-way Liu.